The Williams Companies (WMB) is an energy infrastructure company that owns and operates midstream gathering and processing assets, and interstate natural gas pipelines. The charts of this energy name look similar to other energy plays that corrected lower in June. Let's check.
In this daily bar chart of WMB, below, we can see that prices corrected lower in June and July to test the rising 200-day moving average line several times. Prices railed in late July to close above the 50-day moving average line which is now bottoming.
The On-Balance-Volume (OBV) line declined in June but has improved in July. The Moving Average Convergence Divergence (MACD) oscillator is now crossing the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of WMB, below, we can see some positive clues. Prices were weak in June and early July with prices testing the rising 40-week moving average line. The weekly OBV line shows strength the past two years and more importantly it made a new high for the move up and hopefully leading the price action.
In this daily Point and Figure chart of WMB, below, we can see a potential upside price target in the $37 area.
In this weekly Point and Figure chart of WMB, below, we can see a potential upside price objective in the $44 area.
Bottom line strategy: Shares of WMB could trade sideways for a few weeks before resuming its current advance. Try to buy WMB below $33 risking to $30.
