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Fan Yang

Sprint (S) - Failed Price Bottom Might Lead to More Downside

In late 2018, I was looking at Sprint $S with the thinking that it was in a cup-and-handle price bottom attempt. However, the $6.60 resistance was still holding, so I was waiting for a break above that to confirm.

Alas, price failed to push through this resistance, and the price bottom scenario appears to be invalid. 

Sprint Daily Chart

(click to enlarge)

Bears in Charge:
- The cup-and-handle price bottom scenario is becoming less and less likely.
- Meanwhile, we can see that the RSI has tagged 30 and has held under 60 for the most part. This reflects bearish momentum.
- Furthermore, after failing to break above $660, price fell back below the cluster of 200-, 100-, and 50-day simple moving averages (SMAs.). Then, after a bullish attempt, it has so far respected this cluster as resistance.
- If the market continues to show resistance here around $6.00-$6.10, the pressure will build on the $5.50-$5.60 support. 
- Below $5.50, the 2018-low around $4.90 will be in sight.

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