Louis Navellier’s #1 Stock for 2022

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Wed, October 20 at 4:00PM ET

Trade of the Day: Sprint Corp (NYSE:S)

The market was oversold as it came into last week following a two-week pullback and backtest to the major moving averages. While a rebound was nearly a given on a Hillary Clinton win, a Donald Trump presidency wasn’t, and that caught Wall Street off guard.

However, the technical outlook dramatically improved following last week’s reversal and the run towards record highs. The major moving averages were in severe downtrends, with mini “death crosses” forming on the Dow and S&P 500. Last week’s action corrected these issues, for the most part, with the major indices reclaiming their 50-day moving averages.

My trade for you this morning is on Sprint Corp (NYSE:S) as a likely takeover candidate. There is speculation that Sprint itself could make a bid for T-Mobile US Inc (NASDAQ:TMUS), but I believe Sprint will get acquired before it can make or possibly afford a buyout. There is grapevine talk that DISH Network Corp (NASDAQ:DISH) or perhaps Time Warner Inc (NYSE:TWX) is interested in Sprint if the current proposal from AT&T Inc. (NYSE:T) falls through.

Buy to open the S January (2017) 7 calls (S170120C00007000) for a maximum price of $0.85.

Resistance is at $7.50. Continued closes above this level should lead to a run towards $7.75–$8. Shares traded to a 52-week high of $7.54 on Monday. Support has moved up to $7.25–$7.

Article printed from InvestorPlace Media, https://investorplace.com/2016/11/trade-day-sprint-corp-nyse-s/.

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