Level 3 Communications

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Level 3 Communications ( LVLT) is a facilities-based provider of a broad range of integrated communications services. This stock closed up 0.48% at $22.96 in Monday's trading session.

Monday's Volume: 3.50 million
Three-Month Average Volume: 1.50 million
Volume % Change: 235%

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From a technical perspective, LVLT trended modestly higher here right above some near-term support at $22.50 with heavy upside volume. This stock has been uptrending for the last two months, with shares moving higher from its low of $19.71 to its recent high of $23.49. During that uptrend, shares of LVLT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LVLT within range of triggering a near-term breakout trade. That trade will hit if LVLT manages to take out some near-term overhead resistance at $23.49 to $24.76 with high volume.

Traders should now look for long-biased trades in LVLT as long as it's trending above its 50-day at $21.77 or its 200-day at $21.53 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.50 million shares. If that breakout hits soon, then LVLT will set up to re-test or possibly take out its 52-week high at $25.26 to more past resistance at $25.62. Any high-volume move above those levels will then give LVLT a chance to tag its next major overhead resistance level at $28.

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