Bull & Bear: Sprint Nextel Corporation

Shares of Sprint Nextel Corporation S are trading higher on the session by 1.97%, at $5.44. With the recent decline in shares, you have to wonder where they could head next… Bulls: Bulls will note that the 50-day and 200-day moving averages are upward-sloping, which indicates that shares have been under accumulation. In the past three months, any retracement to the 50-day moving average has been a strong buy point. Bulls will also note that Sprint Nextel Corporation is currently sitting on horizontal support, at $5.31. Shares are also trading in very oversold territory. A bullish trader could buy the August $5.50/6.00 call spread for a net debit of $0.17. Bears: Bears will note that Sprint Nextel Corporation recently made a massive technical reversal; since then, shares have been sliding lower and lower. Bears will also note that the $5.30 level is not massive support; $5.10 is the first level with consistent and repeated support points. The stock is also trading well above the 200-day moving average, which could lend some mean reversion to the downside. Bears will also note that Sprint Nextel Corporation has received a few downgrades over the past few days. A bearish trader could buy the August $5.50/5.00 put spread for a net debit of $0.24. Sprint Nextel Corporation is a holding company, with its operations primarily conducted by its subsidiaries. Sprint is a communications company offering a range of wireless and wireline communications products and services for individual consumers, businesses, government subscribers and resellers. The company operates in two business segments: Wireless and Wireline. Sprint offers wireless and wireline voice and data transmission services to subscribers in all 50 states, Puerto Rico and the United State's Virgin Islands.