Telecommunications industry

Monitor and predict the growth prospects and potential risks of the Telecommunications industry by examining the financial and macroeconomic factors affecting it and the latest Telecommunications news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Telecommunications updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.

Click to explore the factors and the financial models used by MacroVar to analyze the Telecommunications industry trend, growth prospects and risks.

Telecommunications industry Markets

US Telecommunications industryUS.TELCOS169.990.50.50.517955.2247-1.27-1.17-3.1-0.07527
Europe Telecommunications industryEU.TELCOS710.450.50.50.3034858.7257-2.29-0.53.82-0.11296
STOXX Asia/Pacific 600 TelecommunicationsAPAC.TELCOS453.540.512.6506768.1256-2.62-0.57-8.650.12768
Eastern Europe TelecommunicationsEEU.TELCOS62.310.750.5282469.0835-1.14-2.942.05-0.08867
US Telecommunications Credit SpreadsUS.TELCOS.CR125.010-0.5-0.9390241.06491.435.9-1.490.01241
Europe Telecommunications Credit SpreadsEU.TELCOS.CR98.93-1-1-1.075732.45580.28-0.631.45-0.09156

Telecommunications industry News

Telecommunications industry Analysis

MacroVar monitors the performance, risk, trend and momentum of the Telecommunications industry by examining the stock and credit performance of major Telecommunications companies across the US, Europe, Eastern Europe and Asia Pacific. Telecommunications Stock performance is monitored by analyzing STOXX equity indices of major Telecommunications companies while Telecommunications credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Telecommunications high yield corporate bond market.

MacroVar also monitors fundamental indicators closely linked to the Telecommunications sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.

MacroVar also monitors other factors closely related to the Telecommunications industry like closely related financial markets or macroeconmic indicators.

MacroVar estimates the following signals:: Telecommunications momentum, Telecommunications trend, Telecommunications oscillator, Telecommunications RSI and Telecommunications returns.

Telecommunications industry Description

The Telecommunications industry includes the sectors of Fixed Line Telecommunications and Mobile Telecommunications.
The subsector of Fixed Line Telecommunications includes OProviders of fixed-line telephone services, including regional and long-distance. Includes companies that primarily provide telephone services through the internet. Excludes companies whose primary business is Internet access, which are classified under Internet
The subsector of Mobile Telecommunications includes Providers of mobile telephone services, including cellular, satellite and paging services. Includes wireless tower companies that own, operate and lease mobile site towers to multiple wireless service providers.

Telecommunications industry Momentum

Momentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.

MacroVar Telecommunications momentum signal ranges from -100 to +100. The Telecommunications momentum signal is derived as the mean value from 4 calculations for the Telecommunications . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Telecommunications return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Telecommunications momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Telecommunications momentum signal moves from positive to negative value or vice-versa.

Telecommunications industry trend

Telecommunications trend signal ranges from -100 to +100. Telecommunications trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Telecommunications Closing price vs Telecommunications moving average (MA) calculation: If Telecommunications is greater than Telecommunications MA value is +1, else -1, 2. Telecommunications Moving average slope calculation: if current Telecommunications moving average is higher than the previous MA, Telecommunications upward slope +1, else -1
Telecommunications trend model can be used as a trend strength indicator. Telecommunications trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Telecommunications trend strength indicator moves from positive to negative value or vice-versa.

The most important trend indicator
The Telecommunications 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Telecommunications is in an uptrend when Telecommunications price is higher than the 52-week moving average and the Telecommunications 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Telecommunications oscillator and Telecommunications RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.

Telecommunications industry oscillator

The Telecommunications oscillator estimated by MacroVar is the z-score of the currentTelecommunications price versus Telecommunications 1-year simple moving average price. The formula for the Telecommunications oscillator is:
Telecommunications oscillator = (Current Price – 250 trading days Telecommunications simple moving average price) / (250 days Telecommunications price standard deviation)

Telecommunications oversold conditions
Telecommunications is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Telecommunications is oversold it is often due for a rebound. Values of the Telecommunications oscillator lower than -2.5 signify oversold conditions. It must be noted that the Telecommunications oscillator must be analyzed ibn conjunction with the rest ofTelecommunications quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Telecommunications RSI.
Telecommunications overbought conditions
Telecommunications is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Telecommunications is overbought it is often due for a correction. Values of the Telecommunications oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Telecommunications quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.

Telecommunications RSI indicator

The RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Telecommunications is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringTelecommunications uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.

Telecommunications industry returns

MacroVar calculates Telecommunications returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:

Telecommunications returns = (Telecommunications Closing Price – Telecommunications Previous Price)/(Telecommunications Previous Price)
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