Clearwire (NASDAQ: CLWR) is showing a sweet reversal after news that Chairman John Stanton disclosed he bought more than 2 million of the company’s shares in the past week! And the fun part is that more than 10% of CLWR shares are short with 45M, recently decreasing from 46M! The amount of days it should take to cover on this massive short squeeze is still 6 days! (Read more)

This stock is still near the foot of the bed as the yearly high is $8.82, which is still more than 73% lower … Now the chart is setting up perfectly for an incredible run as CLWR closed up more than 27% yesterday at $2.33! Technically speaking, CLWR could at least hit the 50-day moving average before losing steam and that is relatively stationary at $3.10 for the moment.

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Technical Indicators:

• CLWR is showing extreme buying pressure and needs to break through resistance at $2.50 to continue to the $3.00 range.
• The RSI has rocketed out of oversold territory and is now in the buy zone!
• The MACD had a golden cross, which could mean CLWR is having a positive reversal.
• The ADX is nearly crossing positively, which validates the MACD.

The Bottom Line

You have to love it when a company officer shows such confidence in his own company to purchase millions of dollars worth of shares because it means he has faith in its longevity! CLWR was extremely cheap, can you blame him? The only question is, how much more room for profit does it have left at this point? I guess it depends on how much time you have.

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Good Luck,

Ian Decker

Disclosure: No Positions

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