The multinational communications company should reinforce the downturn in the ensuing sessions.
Sales of the Louisiana based company felt significantly during the last year -this after an incredible improvement made in 2012- implying by this time negative earnings and a subsequent weakened financial situation. Although, the company is in the middle of a recovery phase, it is not necessarily a synonym of wealth and stability. Soaring P/E ratio keeps shares overvalued, preventing investors for future shares acquisitions and foremost motivating a seller outlook on the stock. Otherwise, EPS have been revised downwards during the last twelve months for 2014 and 2015 forecasts (-12% and -20% respectively).
Technical patterns show an equity that in spite of its continuous bearish trend successfully outlined an upturn and attained higher levels. But this lush is not present anymore. Having tested the USD 33.9 resistance the security should now turn in the direction to the USD 31.9 support line, helped by 50 and 100-weeks moving averages. In fact, the stock is currently in an overbought situation and prices can’t bear with this bullish pressure anymore; as observed in similar scenarios a correction phase is anticipated.
For reasons above exposed, the timing seems suitable for short position taking at current prices. The bearish trend should allow the security to reach the USD 31.9 support which represents our main target even if lower levels could be attained. Investors could place a stop-loss order at USD 34.7.
Lumen Technologies, Inc. is a facilities-based technology and communications company. The Company provides a range of integrated products and services to its domestic and global business customers and its domestic mass markets customers. It operates through two segments: Business segment and Mass Markets segment. Its Business segment provides its products and services under four sales channels to meet the needs of its enterprise and commercial customers. Its products and services in this segment include Dark Fiber, Edge Cloud Services, Internet Protocol (IP), Managed Security Services, Software-Defined Wide Area Networks (SD WAN), Secure Access Service Edge (SASE), Optical Services, Ethernet, VPN Data Networks, Voice Services, IT Solutions and Other Legacy Services. Its Mass Markets segment provides products and services to residential and small business customers. Its products and services in this segment include Fiber Broadband, Other Broadband and Voice and Other.