Williams Companies (WMB) was cut to a "sell" recommendation by an influential sell-side firm Friday. The Tulsa, Oklahoma-based company deals with natural gas processing and transportation, with additional petroleum and electricity generation assets.
Let's check out the condition of the charts and indicators before drawing our own conclusions.
In the daily bar chart of WMB, below, we can see that the shares have been correcting lower in the past two weeks. Prices are testing the rising 200-day moving average line. This longer-term technical indicator has been tested in October, December, June, July and now in September. The slope of the 50-day line is positive but prices have recently closed below it.
Trading volume looks like it increased recently as prices tested the 200-day line and tells us that traders are indeed watching this indicator. The On-Balance-Volume (OBV) line shows some improvement from early July. The Moving Average Convergence Divergence (MACD) oscillator is pointed lower but is still above the zero line and a sell signal.