Wednesday, August 15, 2012

Charts Say Sprint’s Rally Should Continue

Sprint Nextel (NYSE: S) � This leading wireless and telecommunications services provider is trading in a defined bull channel with support at $5 and resistance at just under $6.

The company�s strong balance sheet and operating expense reduction have resulted in positive recommendations from top analysts. This year, Sprint is expected to increase revenues by 2% and increase its network quality. Losses are expected to be 59 cents in 2011, and 46 cents in 2012, but progress is being made. S&P rates this stock a �four-star buy� with a price target of $6.50 within 12 months.

Technically, that appraisal appears to be on target. Note the strong buy signal from the Moving Average Convergence/Divergence (MACD).

  • See Sam Collins� Daily Market Outlook: Why Traders Should Be Extra Cautious
  • See Serge Berger�s Daily Market Outlook: These Key S&P Support Levels Will Tell Market�s Future
  • See Serge Berger�s Trade of the Day: Airmail Yourself Profits With Quick Aeropostale Trade

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