WILLIAMS COS INC is setting up nicely for a breakout.

Our stock screener has spotted WILLIAMS COS INC (NYSE:WMB) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:WMB.

Technical analysis of NYSE:WMB

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, WMB scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, WMB is only an average performer.

• The long and short term trends are both positive. This is looking good!
• In the last month WMB has a been trading in the 32.22 - 34.53 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• Looking at the yearly performance, WMB did better than 88% of all other stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• WMB is an average performer in the Oil, Gas & Consumable Fuels industry, it outperforms 47% of 388 stocks in the same industry.
• WMB is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

How do we evaluate the setup for NYSE:WMB?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:WMB this score is currently 9:

WMB has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 33.88, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for WMB in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.