Williams Companies Inc. (Friday’s close US$29.29) traded below a falling trend-line from 2018 to 2021 (dotted line). After a brief decline in March, 2020 (A), the stock returned to previous price levels (B) but remained below the falling trend-line until the beginning of 2021.
The stock pierced above the falling trend-line during the second quarter of 2021 (C), had a minor correction to the 40-week Moving Average (40wMA – D) and then resumed the uptrend (E). This price action confirmed the breakout and the start of a major uptrend toward higher targets (solid line).
Williams recently completed a pullback toward the 40wMA (F) and now appears ready to resume the uptrend. Only a sustained decline below US$25-$26 would be negative.
Point & Figure measurements provide targets of US$33 and US$36. Higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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