WMB closes above its opening price after recovering from early selling pressure
Williams Companies Inc. (WMB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
WMB ended the week 4.74% higher at 19.65 after gaining $0.18 (0.92%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.28 lower after the open, the stock 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WMB as at May 22, 2020):
Friday's trading range has been $0.71 (3.69%), that's slightly below the last trading month's daily average range of $0.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WMB. Prices continued to consolidate within a tight trading range between 18.97 and 20.15 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 18.97 during the day, Williams Companies found support at the 20-day moving average at 19.12. The last time this happened on February 21st, WMB actually lost -5.20% on the following trading day. Prices are trading close to the key technical resistance level at 19.70 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 20.15 where further buy stops might get activated. Trading close to March's high at 20.19 we could see further upside momentum if potential buy stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Williams Companies. Out of 77 times, WMB closed higher 55.84% 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 61.04% with an average market move of 1.09%.