Williams Close to Resistance

Published on Thursday, 26 January 2012 22:32 Written by Christian Paolinetti

New York, January 26th (TradersHuddle.com) - Shares of Williams Companies, Inc. (NYSE:WMB) are trading very close to calculated resistance at $29.29 with the current price action closing at just $28.87 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $24.79 and by the resistance level at $29.29, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Williams, as the stock is well above support, however, as the stock pulls back towards $24.79 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $29.29 then traders will get an opportunity to enter Williams stock by establishing a position as the stock moves to a higher range.