This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog
Sprint Corp (NYSE:S) after a big price and volume surge in mid-July, has gone sideways and
consolidated in a rectangle pattern in the 5.85-6.32 trading range. On Friday, the stock finally broke the top line of the trading range on decent volume and I expect more upside pressure in the coming days.
The stock has been on a remarkable run since February lows and it does not looks like the trend will change soon. The daily technical chart still showing a bullish bias. KD line shows positive signs as %K line is rising on top over %D line and the RSI continues moving up. MACD is also starting to curl up, indicating a potential pickup in buying momentum. Plus, the stock is still trading above all exponential moving averages.
As long as the stock stays above the rising EMA20, the possibility of it moving higher to $7 would be on the cards. On the other hand, a fall below the $6.08 mark will drag it lower to $5.85 or $5.55. All technical analysis are flashing bullish outlook in the short/medium and long term.
All views and analysis belong to the author of this post.