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 of below 30 signifies that a stock has been oversold, while an RSI of above 70 indicates that a stock has been overbought. In this final part of our series, we’ll look at Verizon Communications’ (VZ) technical indicators and compare them with those of other telecom companies.
100-day moving averages
Relative strength index
Verizon now has a 14-day RSI reading of 17, which has led traders to believe that the stock is oversold. By comparison, AT&T and Sprint have 14-day RSI readings of 52, while T-Mobile has a 14-day RSI reading of 64.