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. 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 Netflix’s technical indicators and compare them with those of other media companies.
100-day moving averages
On July 22, 2016, Netflix (NFLX) was trading 10.5% below its 100-day moving average. In comparison, The Walt Disney Company (DIS) was trading around 1.3% below its 100-day moving average while 21st Century Fox (FOXA) was trading 6.5% below its average. Comcast (CMCSA) was trading 8.8% above its 100-day moving average, and CBS (CBS) was trading 0.09% below its 100-day moving average.
Relative strength index
Netflix currently has a 14-day RSI reading of 37. Comcast has a 14-day RSI reading of 71, which leads traders to believe the stock is overbought.