When making market entry and exit decisions, investors and traders evaluate technical indicators. The most commonly used technical indicators include RSI (relative strength index) and moving averages. Traditionally, a 14-day RSI level of below 30 signifies an oversold asset, whereas a 14-day RSI level of above 70 signifies an overbought asset.
In this part of our series, we’ll examine the technical indicators of AT&T (T) and compare them with those of other telecommunication companies.
100-day moving averages and RSI
On July 17, 2017, AT&T was trading 9.0% below its 100-day moving average. By comparison, Verizon Communications (VZ) was trading around 7.1% below its 100-day moving average, while T-Mobile (TMUS) was trading 4.1% below its average. Sprint (S) was trading 4.9% above its 100-day moving average.
Verizon, T-Mobile, and AT&T currently have 14-day RSI readings of 28, 39, and 28, respectively, which has led investors and traders to believe that these stocks are oversold. Meanwhile, Sprint has a 14-day RSI reading of 61.