Sprint Corp (S) vs T-Mobile US Inc (TMUS): Technical Analysis

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The Country Caller examines both companies in terms of technical analysis

Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS), two of the major telecommunication players in the US, have been trying to expand their presence in the region. Sprint Corp traded at higher ranges recently, although the consensus price target of analysts is $3.58. The company has not been able to show some impressive financial numbers recently and is yet to enter the profitability region.

T-Mobile, on the other hand, has been going steady and has an EPS of $1.47. The company reached its 52-week highs earlier this month and since then, it is trading near the levels. The Country Caller examines both the companies in terms of technical indicators.

The recent turmoil has taken T-Mobile stock to oversold region and there is an opportunity for the bulls to further dominate. The 14-day RSI stands at 44.5, which indicates it is near the oversold region. The Stochastic RSI however depicts a completely oversold situation which may be another positive for the bulls. The current bearish trend is not so strong and the bulls are also losing momentum gradually.

Major price level for T-Mobile is $41.54, if the level is achieved successfully, then the stock may head towards $41.88 and $42.72 levels, respectively.  Immediate support exists at $40.68 level, a fall below which may further plummet prices to $40.16 and $39.30 levels, respectively.

Sprint Corp appears to be slightly overbought and may see a rally in today’s session too. The 14-day RSI is currently 62.37, which indicates that the stock is approaching its overbought region. Moreover, the Stochastic RSI hints a relatively Neutral situation. The Average Directional Index (ADX) suggests that the bearish trend is getting stronger. There seems to be very little power left with the bulls though.

Major price level for Sprint Corp stock is $4.27, and if the level is reached, then the stock may head towards $4.34 and $4.53 levels, respectively. Major support exists at $4.08, a fall below which may plummet to $3.96 and $ 3.77 levels, respectively.

Our stance on both the telecom companies remains Neutral.

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