If No Tangible Positive News Sprint Will Possibly Test $3.62-$3.68 Again on Monday
Here is my response regarding my expectations for Monday:
If there are no tangible positive news prior to market open on Monday, Sprint will possibly test the lower end of the $3.62 - $3.77 range again.
If you can sell over $3.72 and buy quickly around $3.64 on the "climb" that may be worth trying. Stock is stochastically "oversold" but if it can not break out of the $3.62 - $3.77 range for whatever reason on Monday downward pressures may increase next week. I expect the institutional "buyers" will only observe prior to $3.62. If there is tangible negative news, I would not buy Sprint until an "upward trend" is established two days in a row over $3.77.
Since S could not test $3.62 again today with relatively low volume (52.3 M) an upgrade or a downgrade is probable over the weekend to force a new trend (up or down).
This is from a technical perspective. I personally believe Sprint is a "Strong Buy" and something very positive is in the works by looking at the actions taken by Sprint management, assessing the success rate of the Sprint management in meeting predefined goals (including Palm) and the recent significant upgrades from Credit Suisse and Citigroup (this tells me the direction is changing also in Wall Street).
Revisiting what was mentioned on Monday once again:
1. Sprint did not close over $3.77 two days in a row with sufficient volume. 2. Sprint did not close over $3.84 with a volume of 80M or more shares. 3. No tangible positive news during the last 3 business days. 4. As long as one of these do not happen revisiting the lower range of support $3.62 - $3.68 is probable.
1. S&P reiterated "buy" with $6.00 price target on the 18th. 2. MarketEdge upgraded Sprint to "Long" on the weekend (19-20th December. MarketEdge had an "avoid" on Sprint till mid November. MarketEdge's mostly technical assessments are very highly valued by brokers. 3. These are not the "upgrades" or positive news that may move Sprint but may help avoid visiting the lower range ($3.62-$3.68) of the support zone for today. 4. If S goes over $3.84 with volume (I would say over 80 M) this may signal a trend reversal.