You may have noticed the recent increase in the price of Qwest during the past 12 months. In fact, during such a volatile time period, the stock has increased near a percentage of 110%. Such activity is uncommon during such a short duration especially as telecommunication company in a sector plagued by oversold equities. Coming off surprising lows of near one dollar almost four years ago, you might be hesitant to join the bandwagon, but also note that a little bit before reaching such a low, Qwest reached a high of 30.00: a mark I believe it will attain again.

Based with strong fundamentals, Qwest is hard to use technical analysis due to its unusual steady increase over the duration of one year. Typically I base a lot of my predictions off resistance and support levels or the head and shoulders concept, but interesting enough, this company does not experience such volatility and grows at a rate you would expect for durations of five to ten years. However, with strong cash flow (especially in the recent report of operating margins) and good guidance which should prop up earnings, Qwest still remains a strong buy. Some investors may argue that since the company has surpassed its recent 52 week high, the stock may be in for a sell off. Well characteristically I would agree with such a sentiment, but the same idea was said when Qwest was around 7.00 and again at 6.00 and 5.00. What happened during those periods? The price did not hit a resistance level and continued to growth at a fairly rapid rate. At a number around 8.50, I will not be a partisan to such a conviction again and proclaim that Qwest has the potential to reach its previous five year highs again.