Time Warner Cable: Ready for some Upside?

Published on Monday, 21 May 2012 22:18 Written by TradersHuddle Wire

New York, May 21st (TradersHuddle.com) - Shares of Time Warner Cable Inc. (NYSE:TWC) ended the trading session higher by $2.11 or 2.85% from its previous close. Time Warner Cable's price action developed what can be considered a reversal pattern in the form of a tweezer bottom, which is a candlestick pattern that is usually formed at the end of a downtrend. The tweezer bottom is considered a reversal pattern, so traders will need to monitor the price action for confirmation.

Time Warner Cable Inc. (NYSE:TWC) offers cable television subscription services. The Company also offers Internet access and voice over Internet protocol telephone services. Time Warner Cable serves residential and commercial customers in the New York state, the Carolinas, Ohio, southern California, and Texas

Traders looking for an entry in Time Warner Cable can use the tweezers as a good reference point to establish the long position, as the pattern provides defined risk by giving a good reference point for support.

Traders look for tweezer bottoms, as they provide an entry with a small defined risk. They are a leading indicator that provide an alert for a trend reversal or stabilization. The tweezers imply that bears or sellers were not able to push the stock lower, therefore providing the opportunity to look for a bounce. Below an example of a Tweezer Bottom reversal pattern: