Sprint Nextel did precisely what we anticipated by dropping to , about, $2 twice, once in Oct. 2011 to end wave 4 and again in Jan 2012 to complete wave 5. We forgot to take note!, just too many stocks to keep an eye on. As a general rule one should always reverse positions after the completion of a 5-wave sequence. If one is only interested in playing the long side, you simple alternate between being out or being long. S looks like it is in a 4th wave on its way to double topping. Not worth playing anymore.
This stock worked well for us before, we simple have not looked at it unfortunately. The low in October at about $4 is the end of a 5 wave sequence that eroded almost 60% of the value, an obvious buy at that level. From that low the stock has been doing an a-b-c counter-trend rebound. The b in this case is a triangle. Unlike a 4th wave triangle this is sort of the pause that refreshes. The stock should now go to about $6.75
Today’s anti-trust objections to the merger of ATT and T-Mobile has given this stock a little boost. Perhaps it is the beginning of a new bull but I do not think so. For the moment the action over the past month have the distinct look of a wave 4 a-b-c, implying another down-leg right around the corner.