Sprint Is Worth Taking A Look At Here

Yesterday (01/18/19), Sprint just nose dived and broke a record for a new 52 weeks low of $5.24 per share.

Let’s take a look at the chart, and see what I mean when I say Sprint absolutely deserves a look.

11918S

Judging off the chart alone, Sprint looks bearish. The red cloud (Ichimoku Cloud Indicator) above the current candle sticks indicates an area of resistance the stock must rise above to confirm an uptrend.

The Yellow, Blue, and Green lines are resistance levels that Sprint must break through to show any promising uptrend is confirmed.

But why did I bring this stock to attention if what I’ve said so far only confirms Sprint is going no where but down?

Well, I think the opposite. I think I’ve caught where Sprint has found support at an early stage in what is to come.

Take a look at the dotted red line on the bottom of the chart. This red line is a very strong support line, why? Let’s go back 3 years from now and look at Sprint’s 5 year chart.

11918S 2

Here you can see where the dotted red line provides us with crucial information to help us get a better feel for what lies ahead for Sprint Corp.

Back in 2015, this stock has tried to break the resistance price level of $5.30/share (dotted red line) almost 4 times! Once in February, then tried again in April, and then again in August, and in October of 2015, it couldn’t even reach the resistance price level of $5.30/share. I knew it didn’t even stand a chance in October because a Triple Top Pattern formation was formed due to the 3 failed breakout attempts.

Then it finally did it… August of 2016, Sprint tried once more to break this $5.30 price and succeeded, and boy did it ran for quite some time! It ran for almost 7 months!

Here we are today, with our old enemy… the red dotted line. If Sprint breaks this support line, forget about this whole post. It’s going to sh*ts. But if this price holds… which is a possibility, could mean this stock is at the turning point for a reversal.

Volume traded EOD (end of day) yesterday was 27Mil., where average volume was only 18Mil. I love watching stocks where there’s more volume trading than their average volume because that means action/ volatility! Something’s brewing with this stock, and I’m excited to see where it ends up.

Fundamental(S)

Now that we got all the analytical analysis out of the way, I want to shine some light with some news on Sprint.

According to Seeking  Alpha:

  • Since November, Sprint’s parent company, SoftBank has bought more than 70.4Mil shares for $423.35Mil.
  • In January alone, SoftBank has bought just more than 21Mil shares.
  • These shares were valued between $5.61-$5.95.
  • Softbank also holds 54.58 million shares of Sprint stock options that it may exercise until July 10.

According to Yahoo Finance (January 18, 2018)

  • After patent litigation with Cox Communications (which helps to explain Sprint’s recent down trend), announces a new multi-year business agreement designed to mutually strengthen both companies.

Also worth mentioning, back in November of 2017, Sprint formed a partnership with Altice USA.

Both Cox and Altice are cable television service providers, and according to Wikipedia, Cox is the third-largest cable television service provider in United States, serving more than 6.2Mil. customers (Altice, 4.9Mil. customers).

To wrap things up, Sprint is going places. One way or another, but isn’t that the way for all stocks? To move one way or another? Keep an eye out for a break out from the dotted red line. If it bounces, could be a good long, and if it breaks, could be a good short. Either way, let’s make some gains this year!

 

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