11/16/99 Level 3
Points to watch:
Level 3 has gained nearly 50% during its
rally from the mid-October lows and now must break through a strong
resistance band at 74.5-77.5 before it can move higher. The stock
closed up 0.62 yesterday at 74.56, after hitting 77 intraday, a level
which also acted as resistance in July and as support in April.
Short and long term technical indicators
continue to be favorable: both daily and weekly stochastics are moving
solidly higher, and daily MACD gave a buy signal on October 14th.
A buy signal would be given on a break
above 77.5, but we would wait for the added confirmation of the stock
moving above Fibonacci resistance at 79.5 (the 38% retracement of its
April to August decline) before buying. After a signal is given, the
next resistance would come at 82.5 and 90. Support is at 73.3 and