Level 3 Communications - LVLT - close: 24.93 change: +0.91

Stop Loss: 23.49
Target(s): 27.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LVLT is a communications technology company. The stock could see a short squeeze. The most recent data listed short interest at 26% of the 153 million-share float. Until today's +3.7% rally LVLT has been consolidating sideways the last several days. Now LVLT is testing resistance at its simple 200-dma and its late February high.

I am suggesting a trigger to open bullish positions at $25.25. If triggered our target is $27.75. More aggressive traders could aim a lot higher. FYI: The Point & Figure chart for LVLT is bullish with a long-term $41.50 target.

Trigger @ $25.25

Suggested Position: buy LVLT stock @ (trigger)

- or -

buy the Apr $25 call (LVLT1221D25) current ask $1.30

Annotated chart:

Entry on March xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on March 14, 2011