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 has been oversold, while an RSI above 70 indicates that a stock has been overbought. In this part of the series, we’ll look at Walt Disney’s (DIS) technical indicators and compare them with those of other telecom companies.
100-day moving averages
On April 14, 2017, Walt Disney (DIS) was trading ~4.8% above its 100-day moving average. In comparison, Dish Network (DISH) was trading ~2.3% above its 100-day moving average, while Netflix (NFLX) was trading ~5.9% above its 100-day moving average.
Relative strength index
Walt Disney (DIS) currently has a 14-day RSI reading of 63. In comparison, Dish Network and Netflix each have a 14-day RSI reading of 53, leading traders to believe that each stock has been overbought.
Meanwhile, Time Warner and Charter Communications (CHTR) have 14-day RSI readings of 63 and 57, respectively, leading traders to believe that the stocks are entering overbought territory.