Time Warner Close to Resistance

Published on Friday, 03 February 2012 06:04 Written by Danny Miller

New York, February 3rd (TradersHuddle.com) - Shares of Time Warner Inc. (NYSE:TWX) are trading very close to calculated resistance at $37.90 with the current price action closing at just $37.18 placing the stock near levels that make it difficult to buy.

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 $33.41 and by the resistance level at $37.90, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Time Warner, as the stock is well above support, however, as the stock pulls back towards $33.41 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $37.90 then traders will get an opportunity to enter Time Warner stock by establishing a position as the stock moves to a higher range.