This High-Yielder Should be Sold Now

by Sam Collins | July 12, 2013 1:08 am

CenturyLink (CTL[1]) — This integrated communications company is forecast by S&P to have a 1% decline in revenues in 2013. Although earnings are projected to increase to $2.75 this year, up from $2.67, consensus earnings for 2014 are just $2.78. The stock has been supported by a 6.1% dividend yield, but that could be in jeopardy.

Half of a wide downside gap that opened in February has been covered by a rally that ended in May. But the stock failed to reverse the downtrend and instead now challenges the resistance line at $36. Support is at $34.

With buying volume diminishing compared to selling volume and the MACD overbought, CTL should be sold.

07 13 sell ctl1 300x185 This High Yielder Should be Sold Now
Click to Enlarge

chart key 300x84 This High Yielder Should be Sold Now[2]

Endnotes:
  1. CTL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTL
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/07/trade-of-the-day-centurylink-ctl/
Short URL: http://invstplc.com/1bamF38