WMB Crosses Critical Technical Indicator

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In trading on Friday, shares of Williams Cos Inc (Symbol: WMB) entered into oversold territory, changing hands as low as $24.32 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Williams Cos Inc , the RSI reading has hit 29.1 - by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 49.3, the RSI of WTI Crude Oil is at 46.1, the RSI of Henry Hub Natural Gas is presently 53.3, and the 3-2-1 Crack Spread RSI is 66.1. A bullish investor could look at WMB's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), WMB's low point in its 52 week range is $24.11 per share, with $33.67 as the 52 week high point - that compares with a last trade of $24.40. Williams Cos Inc shares are currently trading off about 1.8% on the day.

Williams Cos Inc 1 Year Performance Chart

According to the ETF Finder at ETF Channel, WMB makes up 10.51% of the MLP and Energy Infrastructure ETF (Symbol: MLPX) which is trading lower by about 1.5% on the day Friday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities
Referenced Symbols: WMB , MLPX

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