Sprint Nextel Approaching its 50 Day

Published on Friday, 03 September 2010 05:44 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of Sprint Nextel Corporation (NYSE:S) closed the trading session at $4.34 near its 50 day moving average currently set at $4.42. Sprint Nextel's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Sprint Nextel Corporation (NYSE:S) offers a range of wireless and wireline communications services. The Company develops, engineers, and deploys various technologies, including two wireless networks offering mobile data services, instant national and international push-to-talk capabilities.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $3.88 and calculated resistance at $4.56. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Sprint Nextel shares.

Traders should evaluate their trade if they want to establish a position on Sprint Nextel given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.