WMB runs into sellers around 21.69 for the third day in a row
Williams Companies Inc. (WMB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
WMB ended the week 2.28% higher at 21.54 after losing $0.08 (-0.37%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WMB as at Feb 14, 2020):
Friday's trading range has been $0.27 (1.25%), that's far below the last trading month's daily average range of $0.43. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WMB. Prices continued to consolidate within a tight trading range between 21.26 and 21.70 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on December 2, 2019, WMB lost -1.55% on the following trading day.
The market ran into sellers again today around 21.69 for the third trading day in a row after having found sellers at 21.65 in the previous session and at 21.70 two days ago.
While Williams Companies is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 21.94 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 21.26 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Williams Companies. Out of 111 times, WMB closed lower 57.66% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.45% with an average market move of -0.26%.