Level 3 Gives 2 Ways to Play

• Posted by Greg Harmon
• on December 17th, 2013

Level 3 is a stock that is ready to move higher and worth keeping on your radar. In fact it is two stocks worth keeping on your radar. The holding Company L-3 Communications Holdings, $LLL, has moved through a series of bullish consolidations, first a bull flag and then a falling wedge. Now it sits in a channel consolidation between 100.60 and 103.75. A break of the channel higher has a target of 110 on a Measured Move higher. The MACD is turning up and may be ready to cross to trigger a buy signal as well, while the RSI is holding in bullish territory, pulling back slightly. This one carries a 2% dividend yield as well.

But Level 3 Communications, $LVLT, is also looking ripe for a breakout. This stock has a rising trend support and now is consolidating under the 30.80 level. A move over 30.80 carries a target on a Measured Move to 35.00. The MACD on this one is running sideways and the RSI is rising in bullish territory.

So your choice is the possible 6% move in the holding company but with a dividend of 2% to tide you over or a possible 13% return in the subsidiary.

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