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Today’s chart is of Williams Companies (WMB) which operates as an energy infrastructure company. The company’s Williams Partners segment owns and operates natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area.
Ticker: Williams Companies (WMB)
Strategy: Long Trade
What I Am Looking At:
- Outperformance on a year-to-date basis, +15 percent and +17 one year return
- Outperforming its peers in the energy sector
- Trading just beneath all-time high set back in 1999 ($42 area)
- Daily chart showing a bullish pennant formation
- Short interest has increased nearly 50 percent during the past month as shares were in a consolidation mode
- Peak put and call open interest resides at the 38-strike price for the May series
- A break above the 38-strike price could propel shares higher on a put unwind
- Quarterly earnings growth (yoy) +86 percent
- Reports earnings on May 7th, after the market closes
Strategy: Buy on breakout of pennant, targeting all-time high near $42 area