CenturyLink retested its 1994 lows last month after dropping over 60% from the 2018 peak. The stock has rebounded nicely since and is at new June highs today. CTL is bumping up against the 50 day moving average, a key resistance level since last October, as it works on a higher monthly low. A clear take out of the $11.40 area, which marks the April lows and early May low, could spark quite a run. This would also put some distance on the 50 day for the first time since early October.
At current levels we view CTL as a fairly low risk buy. A close back below this week’s low($10.20) would send a clear warning sign.
Of note, CTL sports a short interest ratio of 8.2(upside fuel).
CTL’s current dividend yield is over 9%.
At time of publication we are long CTL in some managed accounts.