With a current dividend yield above 16% & the technicals indicating a likely move up towards at least the 19.80 level, should the stock take out the minor (white) downtrend + 16.95 resistance level, WMB (Williams Companies Inc.) will be added as a Growth & Income Trade setup with an entry criteria of any print of 16.98 with a suggested stop below 15.80. (note: I had originally incorrectly listed the entry on this trade as any print of 16.80. That typo has been corrected to update the entry price of any print of 16.98).
Any or all of the overhead resistance levels (primary/yellow downtrend line + white horizontal lines) may be added as additional price targets, depending on how the charts develop & of course, assuming that an entry is triggered. Longer-term investors that might be considering holding out for any of those additional & currently unofficial, price targets could use a more liberal stop below the S1 level (14.55-14.65).
WMB is a natural gas operator, which aligns this trade with my longer-term bullish outlook on nat gas. However, WITHOUT EXCEPTION, risk & return go hand-in-hand. There are obvious fundamental reasons as to why Williams Companies is yielding over 16% in a near-zero interest rate environment. Additionally, WMB recently became involved in a legal tussle with Energy Transfer Equity LB, a company they are involved in a pending merger with, which you can read about by clicking here.
Bottom line: Always DYODD and as with all positions, make sure to properly diversify among various sectors/asset classes and if you decide this trade fits your risk tolerance, objectives & trading style, consider making a downward adjustment to your position size to account for the above above gain & loss potential on this trade. Props to member @cheri for putting this one on my radar!
note: This trade idea will be added also be added as a Swing Trade setup as well as a Long-Term Trade setup due to the likelihood of additional price targets & above average gain potential.