Alcatel Lucent SA (ADR) (NYSE:ALU) ended the last trading session with a gain of 4.39% on the back of the announcement of entering a 4 year contract, in partnership with Accenture Plc (NYSE:ACN), with Telefonica to deploy the company’s Motive Customer Experience Administration software for Telefonica in European and Latin American countries.
Alcatel Lucent SA (ADR) (NYSE:ALU) had formed an alliance with Accenture Plc (NYSE:ACN) last year and decided to provide integrated ultra-broadband solutions for communications service providers and large enterprises, that would meet the challenges of rising costs and raised data consumptions. In this mission, the CEM products of Alcatel Lucent SA (ADR) (NYSE:ALU) would create a fine synergy in combination with systems integration and transformation capabilities of Accenture Plc (NYSE:ACN).
Just last month, China Telecom awarded Alcatel Lucent SA (ADR) (NYSE:ALU) a large 4G deal, making it one of the top three high speed mobile broadband access supplier. The company will start with its 9926 enodeB network technology, as well as its related services in the deployment of the network of LTE access for China Telecom in 40 cities in 12 provinces.
Neither Alcatel Lucent SA (ADR) (NYSE:ALU), nor its partner in this venture Nokia Corporation (ADR) (NYSE:NOK) are disclosing any details about this 4G deal with China Telecom but the involvement of some of the biggest cities of China in this project suggests that the contract must have a quite substantial value.
Technically, the price chart looks very bullish as two instances of the same bullish pattern; Cup & Handle is visible in two scales. As the chart attached shows clearly, the breakout above the necklines has taken place already but the worrying factor is the volume, which remains low and raises the possibility of the breakout turning into a false one. So the investors may keep a cautiously bullish stance as long as the price stays above $3.60-70.