Williams Companies Inc (WMB)
The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 2.45% per annum.
- WMB price at the close of May 17, 2024 was $41.27 and was higher than the top border of the primary price channel by $9.55 (30.13%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 32.76% per annum.
- WMB price at the close of May 17, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of WMB price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: January 28, 2022
End date: June 28, 2023
a = 3.4660
b = -0.0001
s = 0.0573
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0001) – 1
= -2.45%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0573) – 1
= 25.78%
January 28, 2022 calculations
Top border of price channel:
Exp(Y680)
= Exp(a + b × X680 + 2 × s)
= Exp(a + b × 984 + 2 × s)
= Exp(3.4660 + -0.0001 × 984 + 2 × 0.0573)
= Exp(3.5138)
= $33.58
Bottom border of price channel:
Exp(Y680)
= Exp(a + b × X680 – 2 × s)
= Exp(a + b × 984 – 2 × s)
= Exp(3.4660 + -0.0001 × 984 – 2 × 0.0573)
= Exp(3.2845)
= $26.69
June 28, 2023 calculations
Top border of price channel:
Exp(Y1,034)
= Exp(a + b × X1,034 + 2 × s)
= Exp(a + b × 1,500 + 2 × s)
= Exp(3.4660 + -0.0001 × 1,500 + 2 × 0.0573)
= Exp(3.4788)
= $32.42
Bottom border of price channel:
Exp(Y1,034)
= Exp(a + b × X1,034 – 2 × s)
= Exp(a + b × 1,500 – 2 × s)
= Exp(3.4660 + -0.0001 × 1,500 – 2 × 0.0573)
= Exp(3.2494)
= $25.78
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 2.45% per annum.
- WMB price at the close of May 17, 2024 was $41.27 and was higher than the top border of the primary price channel by $9.55 (30.13%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: February 21, 2023
End date: May 17, 2024
a = 2.2497
b = 0.0008
s = 0.0388
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0008) – 1
= 32.76%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0388) – 1
= 16.77%
February 21, 2023 calculations
Top border of price channel:
Exp(Y946)
= Exp(a + b × X946 + 2 × s)
= Exp(a + b × 1,373 + 2 × s)
= Exp(2.2497 + 0.0008 × 1,373 + 2 × 0.0388)
= Exp(3.3932)
= $29.76
Bottom border of price channel:
Exp(Y946)
= Exp(a + b × X946 – 2 × s)
= Exp(a + b × 1,373 – 2 × s)
= Exp(2.2497 + 0.0008 × 1,373 – 2 × 0.0388)
= Exp(3.2381)
= $25.49
May 17, 2024 calculations
Top border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(2.2497 + 0.0008 × 1,824 + 2 × 0.0388)
= Exp(3.7433)
= $42.24
Bottom border of price channel:
Exp(Y1,258)
= Exp(a + b × X1,258 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(2.2497 + 0.0008 × 1,824 – 2 × 0.0388)
= Exp(3.5883)
= $36.17
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 32.76% per annum.
- WMB price at the close of May 17, 2024 was inside the secondary price channel.