Williams Bearish Signs

Published on Thursday, 02 February 2012 18:45 Written by Christian Paolinetti

New York, February 2nd (TradersHuddle.com) - Shares of Williams Companies, Inc. (NYSE:WMB) ended the trading session lower by $0.35 or -1.2% from its previous close. Williams' price action formed what is considered to be a bearish engulfing candlestick chart pattern.

The Williams Companies, Inc. (NYSE:WMB) is an integrated natural gas company that produces, gathers, processes and transports natural gas. The Company's operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, the Eastern Seaboard, and the province of Alberta in Canada.

Williams' current stock range is defined by calculated support defined at $28.15 and by the resistance level at $29.60, which should be used by traders planning their trades.

Traders wanting to establish a position in Williams stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Williams shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: