Traders and investors analyze technical aspects of a company while making market entry and exit decisions. Moving averages and the RSI (relative strength index) are among the most widely used technical parameters.
Generally, an RSI below 30 signifies that a stock is oversold, while an RSI above 70 indicates that a stock is overbought. In this part of the series, we’ll look at Viacom’s technical parameters and compare them with those of other media companies.
100-day moving averages
On June 12, 2016, Viacom (VIAB) was trading 5.1% above its 100-day moving average of $40. In comparison, The Walt Disney Company (DIS) was trading ~0.6% below its 100-day moving average and 21st Century Fox (FOXA) was trading 3.3% above its 100-day moving average. CBS (CBS) was trading 1.4% above its 100-day moving average.
Relative strength index
Viacom currently has a 14-day RSI of 47. In comparison, Disney has a 14-day RSI of 34, which traders see as approaching oversold levels.
Viacom accounts for 0.29% of the PowerShares QQQ Trust Series 1 ETF (QQQ), which has 4.5% of its holdings in the television sector.