What Williams Partners’ Technical Indicators Tell Us
Williams Partners’ moving averages
Williams Partners (WPZ) is trading at a discount to its historical valuation and could gain upward momentum amid the current uncertainty in the midstream sector. WPZ was trading 5.2% below its 50-day SMA (simple moving average) and 4.9% below its 200-day SMA as of August 18.
This might indicate a bearish sentiment in WPZ. However, peers Kinder Morgan (KMI), Spectra Energy Partners (SEP), and ONEOK (OKE) are also trading below their both short-term and long-term moving averages.
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Short interest in Williams Partners
The short interest in WPZ was 5.0 million shares as of August 18, 2017, while WPZ’s short interest as a percentage of float ratio was 1.93%. This is slightly higher than its last month’s average of 1.91% and could indicate a bearish sentiment. Still, the short interest in WPZ is still lower than its past-one-year average.
Williams Partners’ relative strength index
WPZ’s RSI (relative strength index) was 12.5 as of August 18, which indicates that WPZ is oversold. RSI is a momentum indicator with values ranging from 0 to 100. An RSI value below 30 indicates that a stock is oversold, while an RSI value above 70 indicates that it is overbought. These extreme RSI levels for WPZ could result in a trend reversal.
Williams Partners’ implied volatility
WPZ’s 30-day implied volatility was 20.3% as of August 18, 2017. Based on its current implied volatility, WPZ could trade in the range of $36.17–$38.27 over the next seven days. WPZ’s stock price is expected to be within this range 68.0% of the time, assuming a normal distribution of prices and using a standard deviation of one.
In the next part of this series, we’ll look into last week’s ratings updates.