This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Nearest Resistance: $1.90
Nearest Support: $1.30
Catalyst: Sprint Takeover Rumors
>>5 Toxic Tech Stocks to Sell Now
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.