Time Warner Cable is in an overall uptrend, but after a short-term selloff from the February 14 $147.28 high, it's seen a bearish MACD crossover. The price hasn't created any lower lows or lower swing highs, and the MACD remains above the zero line, therefore this isn't necessarily a sell signal. While the price may proceed a bit lower, filling more of the February 13 price gap, the price is likely to find support near $135. Therefore, the bearish crossover in this case indicates that a pullback is underway in an uptrend and buyers may be looking to pick up longs in the vicinity of the trendline. If the price drops below $130 there is a case of more bearishness, but until that occurs bulls may want to actually watch for a bullish crossover instead of focusing on this bearish one.
Story continues below advertisement