Key Technical Levels to Watch in CenturyLink Stock



Technical indicators

In the previous part of this series, we assessed the latest Wall Street analyst recommendations for CenturyLink (CTL) stock. Half of the analysts are recommending a “hold.” Now let’s take a look at CenturyLink’s technical indicators and compare them to its rivals in the telecommunications space. Moving averages and RSI (relative strength index) scores are the two most often used technical indicators.

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Moving averages

If a stock’s short-term MA (moving average) is lower than its long-term MA, it signifies a technical weakness and negative investor sentiment. On July 27, CenturyLink’s 20-day MA of $19.21 was higher than its 100-day MA of $18.14, indicating technical strength and positive investor sentiment.

100-day moving averages

On July 27, CenturyLink was trading ~1.3% above its 100-day moving average. Among its competitors, Windstream (WIN) was trading ~48.8% below its 100-day moving average, and Frontier Communications (FTR) was trading ~35.2% below its 100-day moving average.

Relative strength index

A stock’s 14-day RSI (relative strength index) level is measured on a scale of 0–100. A 14-day RSI level that’s higher than 70 suggests a stock is overbought, and a 14-day RSI level that’s lower than 30 suggests that it’s oversold.

On July 27, CenturyLink had a 14-day RSI reading of 23 compared to Frontier’s score of 36 and Windstream’s score of 21. It’s worth noting that in the integrated US telecommunications arena, the 14-day RSI levels for AT&T (T) and Verizon (VZ) were 41 and 64, respectively.

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