WMB closes higher for the 3rd day in a row
Williams Companies Inc. (WMB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WMB finished Thursday at 14.25 gaining $0.86 (6.42%) on low volume, slightly outperforming the S&P 500 (6.24%). Trading up to $0.63 lower after the open, Williams Companies managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WMB as at Mar 26, 2020):
Thursday's trading range has been $1.80 (13.2%), that's slightly above the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WMB.
After trading down to 13.01 earlier during the day, the market bounced off the key technical support level at 13.17 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 19th, WMB gained 6.56% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Williams Companies. Out of 415 times, WMB closed higher 57.83% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.42% with an average market move of 0.46%.