Level 3 Communications, Inc. (NASDAQ: LVLT)
stock has been on an uptrend for half a month. The company keeps advancing since they have refinanced some $460 million of debt. This has significantly raised its credit ratings.
Although the news effect already wore off, repayment of debt improved the company's fundamentals, which is the key factor in keeping the share price on the uptrend. Technical analysis also suggests the uptrend should continue to the next week as well.
There are no signs of negative change in volume, which means there's enough buying pressure to keep the stock price going up despite the overbought position indication. Share price has been reaching out of the Bollinger Band upper envelope. Also short term simple moving average, SMA(5), has crossed longer term moving average SMA(15) on the first week of January, indicating the beginning of an uptrend. This is important, because currently the short term SMA can be used as a support line, indicating if the uptrend is not going to reverse.
Although on short term price moves volatility can play a big role, there should be no major price corrections while the volume has been maintained. Also, if the price manages to retain its upward course during Monday's trading session, it coluld portend a prolonged uptrend.References:
Level 3 Communications, Inc. (LVLT) message board on HotStocked