What CenturyLink’s Technical Indicators Say about Its Stock
A stock’s trend direction can be predicted by technical indicators. Traders and investors find technical indicators extremely useful, as they enable them to make informed entry and exit decisions. The two most popular technical indicators are the moving averages and relative strength index (or RSI) scores.
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100-day moving averages
On September 1, 2017, CenturyLink (CTL) was trading ~16.5% below its 100-day moving average. Among its peers, Frontier Communications (FTR) traded ~27.2% below its 100-day moving average, and Windstream (WIN) traded ~46.0% below its 100-day moving average.
Relative strength index
On September 1, 2017, CenturyLink had a 14-day RSI reading of 36, compared with Frontier Communications’ RSI of 37 and Windstream’s RSI of 51. In the integrated US telecom market, the 14-day RSI readings of Verizon (VZ) and AT&T (T) were 36 and 33, respectively.
A 14-day RSI reading that is lower than 30 suggests an oversold stock, whereas a 14-day RSI reading that is higher than 70 indicates an overbought stock.
CenturyLink’s (CTL) dividend yield was ~11.1% on September 1, 2017. It was lower than Windstream’s dividend yield of ~28.0%. Frontier Communications’ dividend yield was ~17.4% on the same date.
The dividend yield indicates how much cash an investor would receive for every dollar invested in the company’s equity.