Walk, don't run to check out Sprint's (S) chart if you're bullish. There doesn't appear to be any hurry to jump at this one right now.
After a strong run in August, when most other stocks were pulled lower, Sprint is doing the opposite during the September rebound.
It is possible we are seeing a bullish flag setup, but if that is the case, then momentum players won't be looking at this one until we close over $4.90, with some waiting for a new closing high.
Unfortunately, the action in the underlying technical indicators seems to favor this being a change in trend rather than a bull flag.
Note the bearish crossover in the moving average convergence divergence (MACD), which led to a big breakdown in early July. The Relative Strength Index (RSI) has passed under 50 and we've seen the Force Index go red.
Momentum, trend, volume and even volatility are working in favor of the bears here. A close under $4.60 should set us up for a test of $4.20 at the very least.
The weekly picture isn't quite as negative here. The longer-term Slow Stochastics is still bullish, as is the shorter term RSI, but the double top in play now in terms of price is concerning.
The stock is a tough buy here under the $5.25 area. This invalidates the idea of buying a daily push over $4.90, as the upside would be quickly capped.
The support seems tepid until the $4.00 area, so the stock feels like it is in no man's land here. I view the lack of price breakout as a double top rejection and suspect we need to consolidate, likely at lower levels.
If the RSI pushes under 50 here, then I would anticipate the bears taking over and pushing us lower into the fourth quarter.
With so many breakout charts to choose from at the moment, Sprint seems to have little to offer here. It's just not one I can see as a long and does have the setup to offer shorts a trade if the daily chart loses price support.