TWX – Time Warner

Time Warner (8/25/15) Short-term (Positive) : Intermediate Term (Positive) : Long-term (Positive) Time Warner has broken out above a near year-long base pattern, with the majority of trading below the 74 = 75 price range. To draw a simple uptrend line would be too aggressive at this stage, so a parallel to the rising tops is coincident with the 50-day moving average and the highest support line across the tops of the base. Therefore, 77 starts decent support. The prior pullback low at 75.61 is a level that we don't want violated on a short-term basis, as it would negate the breakout. Below that, support at the 200-day moving average, now rising, is at 72.20. A little weakness here could be healthy if volume subsides as price dips back toward 78 - 77. The short- to intermediate-term upside target would be to fill a long-standing gap from August 4th 2015 at 87.65. This is our target short and intermediate term. Depending on how the stock acts when hitting this resistance target, a long term upside target of 92 could emerge. twx