WMB rallies 5.73% on bullish technicals as key resistance near $63.66 tests sustainability

The Williams (WMB) has experienced a notable rally in the most recent two trading sessions, closing up 3.43% on the latest day and 2.23% on the prior day, with a cumulative gain of 5.73% over the past two days. This upward momentum follows a period of consolidation and suggests a potential shift in sentiment. The price action and technical indicators now warrant a detailed analysis to assess the sustainability of the rally and potential future price targets.
Candlestick Theory
The recent price action forms a bullish continuation pattern, characterized by strong closing prices near the upper end of the daily range. A key support level appears to have been established around $59.17 (the closing price of 2025-11-18), which has held firm during pullbacks. Resistance is currently at $63.66 (the latest close), with a critical psychological level at $65.00 (a prior high from late October). The formation of a "bullish engulfing" pattern on the 2025-12-03 session, where the candle body completely engulfs the preceding bearish candle, further reinforces the short-term bullish bias. However, caution is warranted if the price fails to hold above $61.55, as this could signal a breakdown in momentum.

Moving Average Theory
The 50-day moving average (approximately $60.50) is currently below the 200-day moving average (around $58.30), indicating a bearish "death cross" in the longer term. However, the 20-day moving average ($61.40) has crossed above the 50-day line, forming a "golden cross," which supports the recent short-term rally. The price is currently trading above all three key moving averages (50, 100, and 200-day), suggesting a temporary alignment of short-term bullish momentum with long-term bearish structure. A sustained break above $63.66 could trigger a retest of the 200-day MA as a dynamic support level, but a failure to maintain this level may result in a pullback toward the 50-day MA.
MACD & KDJ Indicators
The MACD histogram has turned positive in recent sessions, with the MACD line crossing above the signal line, signaling a bullish crossover. This aligns with the KDJ stochastic oscillator, which has moved into overbought territory (K=85, D=75), indicating potential exhaustion in the rally. While the confluence of MACD and KDJ suggests a short-term overbought condition, the absence of bearish divergence (prices rising while indicators flatten) reduces the immediate risk of a reversal. However, a drop below the 20-day MA could trigger a bearish KDJ crossover, increasing the likelihood of a corrective phase.

Bollinger Bands
Volatility has expanded recently, with the upper Bollinger Band reaching $63.85 (the high of the 2025-12-04 session). The price is currently trading near the upper band, suggesting overbought conditions. A contraction in the bands—seen earlier in mid-November—may have acted as a prelude to this breakout. If the price closes above $64.00, the bands could widen further, amplifying short-term volatility. Conversely, a retest of the lower band at $58.60 (a prior support level) would indicate a return to range-bound trading.
Volume-Price Relationship
Trading volume has surged in the last two sessions, with the latest day’s volume (11.29 million shares) exceeding the 30-day average by 40%. This volume expansion validates the recent price strength, suggesting strong institutional participation. However, a decline in volume during the next rally—despite higher highs—could signal weakening conviction. Conversely, a sustained volume contraction after a breakout above $63.66 may indicate a lack of follow-through, increasing the risk of a false breakout.
Relative Strength Index (RSI)
The 14-period RSI has climbed to 68, nearing overbought territory (70). While this does not yet trigger a sell signal, it highlights the need for caution. A break above 70 would reinforce the overbought warning, particularly if accompanied by a bearish divergence (e.g., higher highs in price with lower highs in RSI). Historical data shows the RSI has previously topped at 72 in early December, suggesting a potential resistance zone. A pullback below 50 would signal a return to bearish momentum.
Fibonacci Retracement
Key Fibonacci levels derived from the October 2025 high ($65.00) to the November low ($56.00) include 38.2% ($61.60), 50% ($60.50), and 61.8% ($59.50). The current price of $63.66 aligns with the 23.6% retracement level, suggesting a potential target for further upward movement. A breakdown below $60.50 would trigger a retest of the 50% level, with the 61.8% level ($59.50) acting as a critical support. The confluence of the 50% Fibonacci level and the 200-day MA at $58.30 could serve as a key area for a potential reversal.

In summary, The Williams exhibits a mixed technical landscape, with short-term bullish momentum supported by moving averages, candlestick patterns, and volume, but constrained by long-term bearish structure. Traders should monitor the 200-day MA and key Fibonacci levels for potential confluence points, while watching for divergences in the KDJ and RSI to gauge the sustainability of the rally. A break above $64.00 could extend the uptrend, but a failure to hold above $61.55 may trigger a deeper correction toward $59.50.