Sprint Nextel Corporation (NYSE: S) — This leading wireless service provider was in a bear market from 2006 to 2008, falling from over $24 to under $2.
On Feb. 22, at $3.55, I said, “This stock is in a sideways trend, but accumulation of the shares appears to be picking up, and a saucer bottom may be forming. Along with the positive accumulation, the stochastic has been issuing buy signals, and another internal indicator, the Moving Average Convergence/Divergence (MACD), is undervalued and issued a buy signal last week.
“The change in trend could be at a very early stage, so the technical picture is not purely positive, but recent changes in opinion by respected analysts in the absence of a negative technical picture make this an intriguing speculation.”
And, on March 18, that review was repeated.
Last week, despite heavy selling in the broad market, Sprint broke from a triple-top on very heavy volume.
Our trading target is raised to $6, but a run to $10 by year-end is possible. S&P rates the stock a “four-star buy” and recently increased its 12-month target to $6 from $5.
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