Netflix’s Technical Indicators: A Peer Comparison
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 of below 30 signifies that a stock has been oversold, while an RSI of above 70 indicates that a stock has been overbought.
In this part of the series, we’ll look at Netflix’s (NFLX) technical indicators and compare them with those of other media companies.
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100-day moving averages
On April 18, 2017, Netflix was trading 5.4% above its 100-day moving average. Let’s see what its peers were doing on the same day.
- The Walt Disney Company (DIS): 5.7% above its 100-day moving average
- 21st Century Fox (FOXA): 2.2% above its 100-day moving average
- Comcast (CMCSA): 1.6% above its 100-day moving average
Relative strength index
Netflix currently has a 14-day RSI reading of 45. Comcast has a 14-day RSI reading of 57, leading traders to believe that the stock has been overbought.