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Buying Opportunity in LLL

by Sam Collins 10/28/09

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 Chart

Chart Legend

L-3 has been consolidating following its fall from almost $115 in late 2008. In mid-September, though, LLL broke from a quadruple-top after a string of high-volume days of buying.

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.

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