Qwest Communications International (Q)

Company

"Qwest Communications International Inc., through its operating subsidiaries, is a leading provider of high-speed Internet, data, video and voice services. With nearly 40,000 employees, Qwest is committed to the "Spirit of Service" and providing world-class services that exceed customers' expectations for quality, value and reliability."

(company website)

Buy

24-Mar-06. Qwest has been on a tear since it broke above $4 last October (sidebar). This is the third time this month that Q has tested the $7 level — could be a breakout in the making.

• Price momentum (PPO) — steady strengthening
• Trend (ADX) — strengthening
• Money flow (CMF) — neutral
• Relative strength (RSI) — "strong neutral" (to coin a phrase)
• Volume — big volume on previous test of $7

Sell

12-Apr-06. I decided to part company with Qwest. I may be overly pessimistic — after all, Q is still above a rising 50-day average — but the chart has deteriorated rapidly in the past few days. Specifically, momentum (PPO) has taken a dive along with trend strength (ADX) and relative strength (RSI). None of this bodes well. Ta-ta!