WMB dominated by bulls lifting the market higher throughout the day
Williams Companies Inc. (WMB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
WMB finished the month -6.9% lower at 19.02 after gaining $0.65 (3.54%) today, notably outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 18.74, the stock confirmed its breakout through the prior session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (WMB as at Jun 30, 2020):
Tuesday's trading range has been $1.05 (5.76%), that's above the last trading month's daily average range of $0.77. 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 slightly higher than usual for WMB. Prices continued to consolidate within a tight trading range between 18.04 and 19.35 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Regardless of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, WMB actually lost -3.09% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 18.04 during the day, the market found support at the 100-day moving average at 18.06. After having been unable to move lower than 18.09 in the prior session, Williams Companies found buyers again around the same price level today at 18.04.
WMB shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 19.35 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Williams Companies. Out of 67 times, WMB closed higher 64.18% 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 52.24% with an average market move of 0.92%.