Time Warner Inc. (NYSE:TWX)
Q: What will happen with TWX? Please advise. Regards Praveen
A: Hopefully it will continue going up. We issued an Uptrend way back on 3/24 before it crossed bullishly above the 50-day moving average, our NBDV and IBDV indicators were rising from an oversold condition and MACD showed some positive divergence. When you get that many confirming signals, that usually means a long trade should work. But you asked where to now. One of our indicators is overbought and one of our indicators is declining. Stochastics are also overbought and starting to tick lower. When we see conflicting signals, which means new long positions are riskier and patience may pay off as there may be some consolidation overdue. Time Warner reports earnings next week so that may also provide a catalyst. Keep an eye out for other media company earnings as a potential guide.