Tuesday, July 3, 2012

Time Warner Inc. (NYSE: TWX)

Time Warner, Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. The Networks segment provides domestic and international networks, premium pay and basic tier television programming services, and digital media properties, which primarily consist of brand-aligned websites. Its premium pay television services consist of the multi-channel HBO and Cinemax premium pay television services. The Film and TV Entertainment segment produces and distributes feature films, television and other programming, and videogames; distributes home video products; and licenses rights to its feature films, television programming, and characters. The Publishing segment publishes magazines and books; and operates various websites, as well as engages in marketing services and direct-marketing businesses. The company's brands include TNT, TBS, CNN, HBO, Cinemax, Warner Bros., New Line Cinema, People, Sports Illustrated, and Time. Time Warner Inc. was founded in 1985 and is headquartered in New York, New York.

To analyze Time Warner's stock for potential trading opportunities, please take a look at the 1-year chart of TWX (Time Warner, Inc.) below with my added notations:

After dropping significantly lower during the fall of last year, and then rallying higher in the winter, TWX has been traveling sideways for most of the last 5 or 6 months. During this time, the stock has repeatedly hit resistance at $38 (blue). On Friday the stock finally broke through that $38 resistance and should be heading higher overall from here.

The Tale of the Tape: TWX recently broke through its $38 resistance. A long position could be entered on a pullback to $38 with a stop placed under that $38 level. A close back below $38 would negate the forecast for a move higher.

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