Nos SGPS SA (ELI: NOS) is a Portuguese media and telecommunications company. The company is a product of a merger between two major telecom companies in Portugal, Zon Multimedia and Sonae Optimus Telecommunications. The company owns around 25% in Sport TV television network. Although the pandemic was partially favourable for the telecom companies, looking at the NOS stock, we can see that it remained stable during the whole pandemic period. This could be explained that with the popularisation of such streaming giants, as Netflix, Roku and Disney, people tend to switch to their services, rather than the traditional TV. Nevertheless, sports are still something that consumers continue to watch on TV, which could remain a decent revenue stream. Although NOS might not be seen as a big gainer in the future, holding its stock could be beneficial for investors from the dividend perspective. Currently, the dividend yield on that stock is approximately 10%.
From the technical side, after finding support near the 2.682 hurdle around mid-February, NOS started climbing higher and is now seen trading above a short-term tentative upside support line taken from the low of March 5th. As long as the share price is able to balance above that line, we will continue aiming higher.
A push above the current high of today, at 3.116, may attract more buyers to join in. This may help the stock to rise further, potentially aiming for the highest point of March, or for the 3.294 barrier, marked near the highs of December 8th and 9th. Initially, NOS might get halted around there, but if the buying interest is still strong, the share price could easily climb to the highest point of December, at 3.388.
The RSI is currently flat but remains above 50. The MACD, although slightly below the trigger line, continues to run above zero, while pointing higher. The two oscillators suggest there could be more upside in the works, as they indicate positive price momentum, which is in line with the scenario mentioned above.
Alternatively, if the stock breaks the aforementioned upside line and falls below the 2.968 hurdle, marked by the current lowest point of April, that could spook new buyers from entering for a while. The share price could drop to the area between the 2.845 and 2.871 levels, which mark the high of March 9th and the low of March 15th respectively. If that area is not able to halt the slide, the next possible target could be at 2.682, which is the current lowest point of this year.
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