Published March 29, 2017
7:15 PM

On March 29, 2017 Sprint Corp (S) crossed above its 100 day moving average (MA). Historically this has occurred 197 times. When this happens, the stock does not always continue to rise. It has a median gain of 6.404% and maximum gain of 25.566% over the next 15 trading days.


When we take a look at other technical indicators, the relative strength index (RSI) is at 47.9289. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is neutral and looking for direction. The RSI was trending down, but has broken that trend and could begin heading up even if it is short term.

The true strength index (TSI) is currently -10.0885. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is trending down.

The positive vortex indicator (VI) is currently 1.0030 and just crossed over the negative indicator. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending upward and typically does so for at least a few days.

Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current position in a wedge/triangle pattern, the stock could gain 2.03% over the next two weeks. The stock is about 21 days out from the apex of a wedge pattern. Typically, the stock will break significantly up or down before it actually makes it to the apex. The stock could hit the resistance line (top of trend channel) and continue onward. If the breakthrough happens on strong volume, it is a sign of continued upward movement. The inverse is different if it breaks through the support line (bottom line in wedge) which is around 8.20. If the stock breaks down with volume it could begin a new trend or use the dotted white line as a new support line. If this occurs, expect the stock to continue down.

DISCLOSURE: I currently do not have positions in the stock mentioned above. I most likely will not enter a position within the next 72 hours. Historical movements and technical indicators should never be the sole basis for entering positions involving risk. Make sure appropriate research is conducted prior to taking any risk in a marketplace.

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