Williams Partners (WPZ) is poised to move higher in 2017. A juicy yield and the possibility of capital gains. Yes.
Tell me more you ask? Let's check the charts and indicators this morning.
In this one-year daily chart of WPZ, below, we can see two trends for WPZ in 2016. The first trend is the big rally from the February price low around $14. Prices quickly doubled from that low and then transitioned to a sideways trend. Prices have moved sideways for eight months and beneath-the-surface accumulation has continued.
As WPZ moved back and forth around the flat 50-day moving average line, the On-Balance-Volume (OBV) line inched higher. A rising OBV line happens when the volume of trading is heavier on days when the stock closes higher. Higher volume on an up day tells you buyers are aggressive and not always waiting for a dip to buy. Prices are now testing the upper end of this sideways pattern and are poised to breakout. The OBV line has already led the way and the Moving Average Convergence Divergence (MACD) oscillator turned bullish, too.
In this three-year weekly chart of WPZ, below, we see that prices are above the rising 40-week moving average line. The weekly OBV line is positive and the MACD oscillator looks like it is crossing to a fresh go long signal.
A close above $40 could open the way to gains to $50 this year.