Time Warner : Anticipation of a bearish reversal
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$39.12 | $0 | $39.6 | +100% |
From a technical viewpoint, the proximity of the USD 39.1 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.
Therefore, the most offensive investor can benefit from the technical configuration to take a short position. The objective will be fixed near to the 20-day moving average at USD 38.4. Only the breakdown of this level would open up new bearish targets toward USD 36.6. The stop loss will be set above USD 39.4.