Williams Breaking Out?

Published on Thursday, 02 September 2010 05:24 Written by Christian Paolinetti

New York, September 2nd (TradersHuddle.com) - Shares of Williams Companies, Inc. (NYSE:WMB) closed the trading session at $18.86 just above calculated resistance at $18.63 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to 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.

Williams' stock was trading in a well defined range with support at $17.72 and resistance at $18.63, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Williams' stock is still near the broken resistance level, traders will be focusing on $18.63 to see if the stock holds the breakout without rolling over.