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Reading Sprint’s Moving Averages and Relative Strength

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Sprint’s technical indicators

In this part, we’ll take a look at Sprint’s (S) technical indicators and compare them with those of competitors in the US telecom space. On November 22, 2017, Sprint stock was trading at $6.15, 1.9% below its 20-day moving average of $6.27, 12.3% below its 50-day moving average of $7.01, and 19.6% below its 100-day moving average of $7.65.

As of November 22, 2017, Sprint had a 14-day RSI (relative strength index) score of 44, compared with Verizon’s (VZ) score of 47, AT&T’s (T) 70, and T-Mobile’s (TMUS) 63. Normally, if a stock’s 14-day RSI score is above 70, it denotes a probable fall in price, whereas a 14-day RSI reading of below 30 denotes a probable rise in price.

Moving average convergence divergence

As of November 22, 2017, Sprint had a MACD (moving average convergence divergence) of -0.30. In comparison, AT&T’s MACD is -0.59, Verizon’s is -0.83, and T-Mobile’s is -0.81. MACD relates to changes in a stock’s short-term and long-term moving averages. A negative MACD figure means that a stock is following a downward trading trend, whereas a positive MACD figure signals an upward trading trend.

Sprint’s scale

As of November 22, 2017, Sprint’s market capitalization was ~$24.6 billion, making it the fourth-largest US wireless player in terms of market capitalization. In comparison, Verizon’s market capitalization was ~$192.1 billion, AT&T’s market capitalization was ~$214.1 billion, and T-Mobile’s market capitalization was ~$51.0 billion.

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