Trading Idea - Is Time Warner close to Support?

Published on Tuesday, 09 February 2010 18:34 Written by Christopher Lynn

New York, Feb 9^th (TradersHuddle.com) - Shares of Time Warner Inc. (NYSE:TWX) are trading very close to calculated support at $26.74 with current price action closing at just $27.41 places the stock price near levels where traders will start paying attention.

Time Warner Inc. (NYSE:TWX) is a media and entertainment company. The Company's businesses include Internet services (AOL), cable, filmed entertainment, cable television networks, and publishing.

Time Warner's current stock range is defined by current calculated support defined at $26.74 and by the resistance level at $28.54, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Time Warner's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $28.54 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.