Traders and investors analyze technical aspects of a company while making market entry and exit decisions. Moving averages and 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 AT&T’s technical parameters and compare them with those of other media companies.
100-day moving averages
On December 29, 2016, AT&T (T) was trading 6.6% above its 100-day moving average of $40. In comparison, T-Mobile (TMUS) was trading 16.1% above its 100-day moving average, and Verizon Communications (VZ) was trading 5.4% above its 100-day moving average. Sprint (S) was trading 25.8% above its 100-day moving average.
Relative strength index
AT&T currently has a 14-day RSI of 82. T-Mobile has a 14-day RSI of 46, which traders see as approaching the overbought level.
AT&T makes up 1.2% of the SPDR S&P 500 ETF (SPY). SPY has an exposure of 3.7% to the computer sector.