We wrote about Williams Partners (WPZ) in early April and the charts looked bullish, so we concluded: "It appears WPZ is ready to move higher again. Traders can approach this name from the long side, risking a close below $38 and looking for a rally to the low $50s"
Depending on where you may have placed your sell stop, you could be flat WPZ. Let's look at a few updated charts and indicators to see if we reenter the long side of WPZ or not.
In this daily bar chart of WPZ, above, we can see that slope of the 50-day moving average line has turned down and prices have closed below the 200-day moving average line.
The daily On-Balance-Volume (OBV) line has turned lower the past two months. The trend-following Moving Average Convergence Divergence (MACD) oscillator slipped below the zero line in late May for an outright sell signal.
This weekly chart of WPZ, above, is showing some erosion from the last time we checked. Prices are testing the flattening 40-week moving average line.
The weekly OBV line is starting to edge lower, signaling more aggressive selling, and the weekly MACD oscillator is pointed lower in a "take profits sell mode".
In this Point and Figure chart, above, we can see the breakout at $39. Prices rallied to $41 and have pulled back to support. It looks like prices could decline to $37 or even $36 without breaking down. It will probably take a rally to $41 to get the bulls back in control.
Bottom line: WPZ has slowly declined the past two months or so, and could just be at the lower end of a sideways trading range, rather than the start of a small breakdown. The yield on WPZ is certainly attractive, but I like to see the price going up. I am sidelined on WPZ until prices can rally above $41.