Nearest Resistance: $1.90
Nearest Support: $1.30Catalyst: Sprint Takeover Rumors >>5 Toxic Tech Stocks to Sell Now Investors in Clearwire (CLWR) are having a great day. Shares of the $2.5 billion 4G broadband internet provider are rallying more than 35% following news that Japanese cellular carrier Softbank was in talks with Sprint (S) to be acquired. Since Sprint owns 49% of Clearwire, the deal likely trickles down to CLWR shareholders either in the form of a bigger source of capital or an outright buyout offer. From a technical standpoint, though, there really isn't a trade to be made here -- yet. CLWR gapped up hard this morning on the news, pushing shares within a few cents of resistance at $1.90. As a result, this stock is still a whole lot closer to resistance than it is to support, making the risk/reward tradeoff look pretty paltry right now. I'd only recommend buying a move above $1.90 to participate in the Clearwire clamor.
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