L-3 Communications (LLL) Shows Room to Move Higher
01/19/2010 12:01 am EST
L-3 Communications Holdings Inc. (LLL) - This company is a major global provider of command, control, communications, intelligence, surveillance, and reconnaissance systems, and aircraft modernization and maintenance.
LLL had been consolidating following its fall from almost $115 in late 2008. In mid-September, L-3 had a false breakout from a triple top after a string of high-volume days of buying.
On October 28, at $73.35, I said, "This pattern often produces a round of profit taking, which drives prices below the breakout point, and that appears to be the situation with LLL. Now at its 200-day moving average with a very oversold stochastic, LLL appears to be a good buy with a target of $95 to $100."
With the stock approaching those levels and looking as though it will continue its march higher, I would now like to adjust the target for LLL to $105 for traders and $110 for long-term buyers.
By Sam Collins of OptionsZone.com