WMB closes lower for the 2nd day in a row
Williams Companies Inc. (WMB) Technical Analysis Report for Apr 06, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WMB finished Monday at 13.50 edging lower $0.15 (-1.1%), notably underperforming the S&P 500 (7.03%). Trading $0.35 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on April 1st, WMB actually gained 7.88% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WMB as at Apr 06, 2020):
Monday's trading range has been $0.99 (7.01%), that's far below the last trading month's daily average range of $1.58. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for WMB.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 13.17 (S1).
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.
Selling might speed up should prices move below the nearby swing low at 13.18 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Williams Companies. Out of 57 times, WMB closed higher 61.40% of the time on the next trading day after the market condition occurred.