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Verizon’s Technical Indicators and What They Could Mean

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Technical indicators

Technical aspects are useful for predicting the direction of a stock’s trend. Technical indicators are of significant value to traders and investors as they decide market exit and entry levels. The two most frequently used technical aspects are the RSI (relative strength index) scores and moving averages.

Let’s analyze how Verizon (VZ) stock has performed recently and compare them to other telecommunication companies.

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100-day moving averages

On October 4, 2017, Verizon was trading 6.2% above its 100-day moving average. In comparison, T-Mobile (TMUS) was trading ~2.4% below its 100-day moving average, and AT&T (T) was trading ~3.9% above its 100-day moving average. Sprint (S) was trading 5.3% below its 100-day moving average.

Relative strength index

On October 4, 2017, Verizon had a 14-day RSI level of 77. Its peers Sprint, AT&T, and T-Mobile had 14-day RSI levels of 47, 85, and 52, respectively.

Generally, when a company’s 14-day RSI level is above 70, it indicates an overbought stock. On the other hand, a 14-day RSI level below 30 implies an oversold stock.

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