Time Warner Inc (NYSE:TWX)<\/b> (Closed: $66.20, Up: 2.05%) opened flat but soon gathered momentum to rally to hit a new 6 year high and closed near the high. The news about the company willing to offer HBO Go through a third party ISP encouraged the buyers as it made its third consecutive positive close. The volume at 7 million remained much higher than the average volume of 4 million. The price action created a 3 candle pattern called Three White Soldiers, with very strong bullish connotations though sometimes the price retrace a bit after this pattern before resuming the upmove again.<\/p>\n
The stock had a tremendous run in the period of 1996 \u2013 1999, when it rose to an incredible high of $263 from the measly low of $4.19. After correcting sharply about 60% of its value, it bounced back more sharply to record a higher high at $288 in the same year. But the IT bubble burst brought a bear market that never really ended for the stock. It fell like a rock to $26 by the end of 2002 and all the next bull market could do for the stock was to take it to $69.75 by early 2007, not even 38% retracement of the last part of the fall. Obviously the bear market of 2008 brought a new low for the stock at $17.81.<\/p>\n
Now the stock is showing initial signs of making a long term reversal as it has broken out of the huge channel containing the entire price action from the 2002 bottom of $26.10. The price has taken a perfect support on the upper boundary this month and made a new high. It is facing the challenge in the $68 – $69.50 zone and another supply zone in $78 – $79 in the coming days. But the investors could accumulate the stock on any dips with a strict stop loss below $60.<\/p>\n","protected":false},"excerpt":{"rendered":"
Time Warner Inc (NYSE:TWX) (Closed: $66.20, Up: 2.05%) opened flat but soon gathered momentum to rally to hit a new 6 year high and closed […]<\/p>\n","protected":false},"author":15,"featured_media":9170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1562,3080],"stock_ticker":[],"class_list":["post-9169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysetwx","tag-time-warner-inc-nysetwx","entry"],"acf":[],"yoast_head":"\n