CenturyLink Is in a Well Structured Setup
Published on Friday, 19 July 2013 12:40 Written by TradersHuddle Wire
New York, July 19th (TradersHuddle.com) - CenturyLink, Inc. (NYSE:CTL) closed the trading day at $36.11, near its 50 day and 200 day moving averages set at $35.98 and $37.47 respectively. CenturyLink's price action placed the stock above the 50 day moving average but below its 200 day moving average, providing a nice trading setup with clear reference points.
CenturyLink, Inc. (NYSE:CTL) is an integrated communications company. The Company provides a wide range of communications services, including local and long distance voice, Internet access and broadband services. CenturyTel operates throughout the United States.
CenturyLink seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.
A tiered approach appears to be the best way to maximize possible movements in the stock, as traders could establish a small position in CenturyLink and wait for the stock to break out above the 200 day moving average at $37.47. Then they could add to the position as momentum builds with the breakout. On the other hand, if support being referenced at the 50 day moving average set at $35.98 breaks, it could signal further downside for CenturyLink in the horizon.