WMB closes lower for the 2nd day in a row
Williams Companies Inc. (WMB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WMB finished the month 0.58% higher at 19.13 after losing $0.21 (-1.09%) today, notably underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.61 (3.16%), that's slightly above the last trading month's daily average range of $0.58. 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 lower than usual for WMB.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on March 5th, WMB actually lost -5.98% on the following trading day.
After trading down to 18.73 earlier during the day, the share bounced off the key technical support level at 18.79 (S1). The failure to close below the support could increase that levels importance as support going forward. The market closed back below the 20-day moving average at 19.24.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 19.85 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 18.61 where further sell stops could get triggered. As prices are trading close to July's low at 18.09, downside momentum might accelerate should Williams Companies mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Williams Companies. Out of 104 times, WMB closed higher 56.73% of the time on the next trading day after the market condition occurred.