Traders and investors analyze technical aspects of a company 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. An RSI above 70 indicates that a stock has been overbought. In this part of the series, we’ll look at The Walt Disney Company’s (DIS) technical indicators and compare them to other media companies.
100-day moving averages
On April 26, 2016, Disney was trading 6.0% above its 100-day moving average of $109. In comparison, Time Warner (TWX) was trading 3.3% above its 100-day moving average, and Twenty-First Century Fox (FOXA) was trading 2.5% above its 100-day moving average. Comcast (CMCSA) was trading 4.8% above its 100-day moving average.
Relative strength index
Disney currently has a 14-day RSI of 68, which puts it at an overbought level. In comparison, Comcast also has a 14-day RSI of 68, which traders see as approaching an overbought level.
Disney makes up 0.76% of the SPDR S&P 500 ETF (SPY). SPY has holdings of 3.6% in the computer sector.