Traders and investors analyze the 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 CBS’s technical parameters and compare them with those of other media companies.
100-day moving averages
On July 6, CBS (CBS) was trading 3.9% above its 100-day moving average of $53. In comparison, Viacom (VIAB) was trading 3.5% above its 100-day moving average and 21st Century Fox (FOXA) was trading 7.7% below its 100-day moving average. The Walt Disney Company (DIS) was trading 0.5% below its 100-day moving average.
Relative strength index
CBS currently has a 14-day RSI of 58. In comparison, 21st Century Fox has a 14-day RSI of 35, which traders see as approaching oversold levels.