Time Warner Between the 50 and 200Day

Published on Friday, 13 August 2010 00:12 Written by Danny Miller

New York, August 13th (TradersHuddle.com) - Shares of Time Warner Inc. (NYSE:TWX) closed the trading session at $30.79 near its 50 day and 200 day moving averages currently set at $31.00 and $30.24 respectively. Time Warner's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

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 price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Time Warner with a small position and wait for the stock to break out above the 50 day moving average at $31.00, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $30.24 breaks it could mean further downside in the horizon for Time Warner.