Time Warner, a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets. Time Warner's second-quarter earnings tumbled 33% as the media company's film and TV entertainment and publishing segments saw double-digit declines in adjusted profit. The share is reaching a technical resistance and could begin a bearish trend.

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.