TWX Watch

Time Warner Inc., TWX, is showing a Parabolic SAR bull signal today on a rise in price to a new high on the three-month chart.

But I'm putting it in my reject pile. However, it's a close enough call that it warrants some discussion.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
TWX $31.89

TWX is trading at that high -- $31.89. The problem is that there is a lot of a congestion around that level, dating back to January and November 2009.

This is the third time TWX has traded in this area, and I would like to see a breakout before I treat it seriously.

In the near term, a bull signal is with the trend. In the longer term, we're talking a sideways move with a top at $33.45. I would want to see $34 or higher before I'd get interested.

Once that level is cleared, of course, it's good sailing up to $40.

Also, earnings will be announced on May 5, which is too close for my rules. I like to avoid analyst and earnings suprises where posible.

Still, an interesting stock and one worth glancing at from time to time to see how things develop.

You are here:

• Reversal
• $40, +25.4%
• $34, +6.6%
• Now $31.89
• Reversal
• $30.93, -3%
• $30.44, -4.6%
• $28.24, -11.5%

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.