For today's chart we've chosen to take a look at Williams Companies Inc. (NYSE:WMB) because several technical indicators are challenging the conviction of the long-term uptrend. As you can see from the chart below, the ascending trendline has been able to prop up the price of the stock several times over the past two years, but we believe that today's bearish MACD crossover is a sign that this story is about to change. The MACD indicator turns negative when the 12-day exponential moving average crosses below the 26-day exponential moving average. This moving average crossover is often accompanied by a burst of downward momentum. It is also important to note that the support from the trendline near $33.50 is the last level remaining that will prevent the bears from taking control of the stock's direction. We've also added the Parabolic SAR indicator, which has recently triggered a sell signal. Bearish traders will likely use this indicator as a guide to help them position their stop-loss orders.


Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

You May Also Like