NEW BULLISH Plays
CenturyLink, Inc. - CTL - close: 34.05 change: +0.17
Stop Loss: 32.95
Target(s): to be determined
Current Gain/Loss: unopened
Entry on April -- at $--.--
Listed on April 14, 2014
Time Frame: exit PRIOR to earnings on May 7th
Average Daily Volume = 5.5 million
New Positions: Yes, see below
Why We Like It:
CTL is in the technology sector. They are a telecommunications company.
The stock appears to have turned the corner. After a terrible performance in 2013 shares of CTL bottomed in early February this year. Now CTL has broken the long-term trend line of lower highs. The two-month bounce has also lifted CTL through all of its key moving averages.
It's possible that investors are moving into CTL as a safe-haven trade. The stock offers a 6.5% dividend yield, which is significant in a market looking for yield.
Technically the last few months have created an inverse head-and-shoulders pattern (that's bullish) and now CTL is poised to breakout past resistance near $34.00.
I am suggesting a trigger to open bullish positions at $34.35. Plan on exiting prior to CTL's earnings report in early May.
Trigger @ $34.35
Suggested Position: stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the May $34 call (CTL1417E34) current ask $0.90