Close to Key Levels: Williams

Published on Friday, 23 November 2012 05:44 Written by TradersHuddle Wire

New York, November 23rd (TradersHuddle.com) - Williams Companies, Inc. (NYSE:WMB) closed the trading day at $33.03, near its 50 day and 200 day moving averages set at $34.29 and $31.67 respectively. Williams' price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

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 seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Williams and wait for the stock to break out above its 50 day moving average at $34.29. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $31.67 breaks, it could signal further downside pressure for Williams.