Is WILLIAMS COS INC Ready to Break Out of Its Range?

Our stockscreener has identified a possible breakout setup on WILLIAMS COS INC (NYSE:WMB). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:WMB for potential opportunities.

What is the technical picture of NYSE:WMB telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 9 out of 10 to WMB. Both in the recent history as in the last year, WMB has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that WMB is one of the better performing stocks in the market, outperforming 78% of all stocks. We also observe that the gains produced by WMB over the past year are nicely spread over this period.
• WMB is one of the better performing stocks in the Oil, Gas & Consumable Fuels industry, it outperforms 88% of 208 stocks in the same industry.
• WMB is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• WMB is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• In the last month WMB has a been trading in a tight range between 43.98 and 45.82.

For an up to date full technical analysis you can check the technical report of WMB

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:WMB exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, WMB also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 45.77. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 44.28, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:WMB be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.