Williams Partners LP (WPZ) was reviewed in August, and I anticipated that, "WPZ is probably going to continue trading sideways." Prices moved sideways in September and October but weakened in November before a decent year-end rally materialized. After a late January peak, prices have been under pressure. The pace of the decline has slowed and this may open the widow for some price improvement.
In this daily bar chart of WPZ, below, we can see that prices are below the declining 50-day simple moving average line and the declining 200-day line. At the end of February we can see a dead cross - a bearish technical signal that occurs when the 50-day average moves below the 200-day line. There are two strong volume spikes - one in March and one at the beginning of April which look like late liquidation.
The daily On-Balance-Volume (OBV) line has been weakening the past three months and tells us that sellers of WPZ have been more aggressive. In the bottom panel of this chart is the 12-day momentum study. Momentum shows a pattern of higher lows compared to the pattern of lower price lows. This difference is a bullish divergence and tells us that the pace of the decline has slowed and this can sometimes be a leading indicator for a rally.
In this weekly bar chart of WPZ, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has moved lower the past three months and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a bearish mode.
In this Point and Figure chart of WPZ, below, we can see a small base with an upside price target of $36.64.
Bottom line: WPZ could rally a bit in the days and weeks ahead to the $36-$37 area but strength above $38.50 where the 200-day line intersects is needed to impress me.