Time Warner still consolidating; unable to break above 97.50 key level.
Time Warner has been consolidating since November 2017 and has been stuck in a channel tilted to the upside. The positive picture in the medium term is at risk of becoming neutral after prices failed to break the 97.50 resistance level several times in the past.
In the daily timeframe, the RSI indicator is sloping down at the 50-neutral level, suggesting a neutral picture in the short term. However, the possibility of an upside reversal in the near term is supported by the %K line of the stochastic oscillator, which is attempting a bullish crossover with the %D line.
If prices continue to head lower, support should come from the 40-day simple moving average (SMA) near the 0.9536 mark. A drop below the 40-day SMA would shift the focus to the downside and open the way towards the 92.30 level, which has been a major support area in the past.
However, should an upside reversal take form, immediate resistance will likely come from the 97.50 significant resistance barrier. A break above this level could shift the bias back to a bullish one, with the next resistance coming from the 98.70 level before re-challenging the 99.50 level.
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