A Look at Facebook’s Technical Indicators
Traders and investors analyze technical indicators when making market entry and exit decisions. Moving averages and the RSI (relative strength index) are among the most widely used technical indicators.
An RSI below 30 signifies that a stock has been oversold, while an RSI above 70 indicates that a stock has been overbought. In this part of the series, we’ll look at Facebook’s (FB) technical indicators and compare them with those of other Internet companies.
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100-day moving averages
On April 18, 2017, Facebook was trading ~8.4% above its 100-day moving average. In comparison, eBay (EBAY) was trading ~6.3% above its 100-day moving average, and PayPal (PYPL) was trading 5.1% above its 100-day moving average.
Relative strength index
Facebook (FB) currently has a 14-day RSI reading of 43. eBay and Yelp have respective 14-day RSI readings of 69 and 46, leading traders to believe that these stocks have been overbought. Meanwhile, PayPal and Twitter have 14-day RSI readings of 38 and 21, respectively, leading traders to believe that these stocks are in oversold territory.