1-Month Relative Strength: 31.77%
Nearest Resistance: $2.60Nearest Support: $2 Mobile broadband network Clearwire (CLWR) boasts the achievement of creating the first 4G mobile network in the country. Unfortunately, that network comes at an exorbitant cost, one that's yet to be covered by the firm's operations. So while revenue growth has been breakneck for the past several years, an unprofitable model in a weak market is a recipe for a selloff. But that's been changing since the start of the year. Right now, Clearwire is forming a bullish ascending triangle setup with resistance at the $2.60 level, and uptrending support below shares. In an ascending triangle, shares bounce between those two technically significant levels, all the while getting squeezed closer to a breakout above resistance. When that happens, being long becomes a high probability trade. On that cue, I'd recommend putting a protective stop at the 50-day moving average. Clearwire shows up on a list of Telecom Stocks Bought and Sold by Hedge Funds.
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