TIVO Watch

The TV-watching time-shifting company TiVo Inc. (TIVO) has moved to bull phase on the macd after 25 days in the bear column. The phase switch comes among rumors of a possible takeover.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
TIVO $8.42

At 2:00 p.m. Eastern

TIVO shares have fallen on hard times of late, since the company on May 14 lost a technology patent lawsuit. The price dropped that day from around $18 down to around $10, and there's been slippage ever since.

So with the stock trading a $8.42, its certainly a cheaper buy than it used to be. The question is, as always, at what price. Enter now on the bull signal, and either make a mint or lose your shirt on the position. There's no way to tell because it's decisions behind closed doors that determine the outcome, not the open market.

Despite the signal, the price is trading near the bottom of Friday's range. So there's little in the way of price confirmation.

Reversal Levels

• $9.25, +9.9%
• $9.10, +8.1%
• $8.42 <== You are here.
• $8.27, -1.8%

In the longer term, the decline brings TIVO down to about where it was trading for much of 2009 and early 2010, before a really happy earnings report in March bumped the price up to $17 and above. So, really, the present decline is a reversion to the norm, the correction of an outlier, and so maybe not such a great takeover opportunity after all.

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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
• sto - Fast Stochastic

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

• trend: Determined by the 5-day moving average, 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.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.