CenturyLink Inc. (CTL) was upgraded to a buy today by theStreet.com's quantitative service. CTL was reviewed in early April, where I wrote that, "CTL might continue to trade sideways in a $15-$19 range but an upside breakout seems to be a when and not an if situation. Aggressive traders could go long CTL above $19 risking to $15 and looking for gains to the $24-$26 area." With today's upgrade to buy another look at the charts is in order along with raising our sell stop.
In this daily bar chart of CTL, below, we can see that prices are above the rising 50-day moving average line. The slower-to-react 200-day moving average line has turned flat from down. At the end of May we can see that the 50-day average moved above the 200-day line for a bullish golden cross. The daily On-Balance-Volume (OBV) line has improved in the past month and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this updated weekly bar chart, below, we can see that prices are above the flat 40-week moving average line. The weekly OBV line is pointed up the past few weeks and the MACD oscillator is ready to cross above the zero line.
In this Point and Figure chart of CTL, below, we can see the breakout at $19.50 and the price target of $23.50.
Bottom line: If long CTL continue to hold and raise sell stops to $17. The $24-$26 area remains our target for now.