Level 3 Communications
1-Month Relative Strength: 30.65%
Nearest Resistance: $26Nearest Support: $22 Last up is Level 3 Communications (LVLT), another communications stock that's shown stellar relative strength since the start of the new year; shares have rallied almost 50% since the first trading day of January... Level 3 is currently forming a long-term rounding bottom pattern in shares, a setup indicates a gradual change in sentiment among market participants. The breakout signal for this pattern is a move above the top of the rounding bottom -- that resistance level to watch is currently $26. On a push above that level, I'd recommend putting a protective stop just under the 200-day moving average; it's the nearest support level that could warn that the momentum is broken in LVLT. Level 3 shows up on a list of Telecom Stocks Bought and Sold by Hedge Funds. To see these stocks in action, check out the at Relative Strength Trades portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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