Williams Broke Resistance
Published on Wednesday, 23 January 2013 07:20 Written by TradersHuddle Wire
New York, January 23rd (TradersHuddle.com) - Shares of Williams Companies, Inc. (NYSE:WMB) closed the session at $34.74 just above calculated resistance at $34.39. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.
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.
The stock was trading in a well defined range with support at $30.59 and resistance at $34.39. Given that this range was broken, traders will be closely monitoring Williams' price action to gather clues on the future direction.
From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Williams is still near the broken resistance level, traders will be focusing on the $34.39 level to see if the stock holds the breakout without rolling over.