uploads/2018/12/chart-1905224_1280.jpg

Williams Companies Stock Reaches the ‘Oversold’ Zone

By

Updated

WMB stock weakens

Williams Companies (WMB) stock has fallen more than 15% in the last two months and is currently trading at a 52-week low. Meanwhile, crude oil prices have slumped, weakening the energy (XLE) sector.

Williams Companies stock is trading at $21.80, almost 13% and 19% below its 50-day and 200-day moving averages of $24.90 and $26.90, respectively. The stock’s weakness is emphasized by its large discount to both moving averages, which are expected to act as short-term resistance for WMB stock.

WMB dma

Article continues below advertisement

Relative strength index

Williams Companies stock is presently trading deep in the “oversold” zone, with an RSI (relative strength index) score of 14. RSI scores below 30 imply that a stock is oversold and its direction could reverse. WMB’s recent weakness has pushed it close to its November 2016 levels.

Short interest

A company’s short interest indicates its number of shares sold short and not yet squared off. WMB’s short interest was 18% on November 30, with 41.1 million total shorted shares. On November 15, the stock had 34.8 million shorted shares. This higher short interest could mean more investors expect the stock’s price to fall.

Advertisement

More From Market Realist