Will This Energy Stock Surge? Chart Signals Big Breakout

Have you ever stared at a stock chart, wondering if it’s whispering the next big move? I’ve been there, squinting at lines and candles, hoping for a clue about where my investments might head. Lately, one energy stock—Williams Companies (WMB)—has caught my eye, and the charts are screaming potential. While the energy sector has been a bit of a snooze in 2025, some hidden gems are showing signs of life, and WMB might just be ready to steal the show with a big base breakout. Let’s dive into why this stock could be your next big win.

Why Williams Companies Stands Out in Energy

The energy sector hasn’t exactly been the star of the stock market this year. In fact, it’s been dragging its feet, underperforming compared to the broader market. But within this sleepy sector, infrastructure plays like Williams Companies are starting to flex their muscles. WMB, a key player in natural gas pipelines, has been quietly building a case for a major move. Unlike the volatile oil and gas producers, pipeline companies offer stability, and WMB’s chart is telling a compelling story of accumulation and potential upside.

The Big Base Breakout: What’s Happening?

Picture this: a stock that’s been stuck in a rut, trading sideways for months, suddenly bursts free and soars to new heights. That’s the essence of a big base breakout, and WMB’s daily chart is setting the stage. Throughout 2024, the stock climbed steadily from a low of around $35 in February to a high just above $60 by November. Since then, it’s been consolidating, bouncing between support at $52 and resistance at $60-$62. This sideways action isn’t boring—it’s a coiled spring, ready to pop.

A stock in consolidation is like a runner crouched at the starting line—quiet now, but ready to sprint.

– Veteran market analyst

The breakout happens when the price pushes past that stubborn resistance level, in this case, $62. If WMB can clear this hurdle, technical analysts project a minimum target of around $72. How do they get there? By measuring the height of the basing pattern—roughly $10 from support to resistance—and adding it to the breakout point. It’s not a guarantee, but it’s a solid starting point for gauging potential.

Volume Tells a Bullish Story

Charts don’t lie, but volume often spills the beans. One of the most encouraging signs for WMB is its Chaikin Money Flow, a volume-based indicator that measures buying and selling pressure. Since December 2024, this indicator has stayed above the zero line, signaling that buyers are in control, even during the stock’s sideways shuffle. Why does this matter? Because a stock closing near its daily highs—day after day—shows bullish conviction. It’s like the market is quietly stacking chips in WMB’s favor.

• Bullish volume: WMB consistently closes near daily highs, suggesting strong buying interest.
• Steady accumulation: Even during consolidation, buyers are outpacing sellers.
• Breakout confirmation: Rising volume on a move above $62 would seal the deal.

If WMB breaks out with a surge in volume and improving Money Flow, it’s a green light for bulls. I’ve seen setups like this before, and when the stars align—price, volume, and momentum—it’s often a recipe for a strong run.

Relative Strength: WMB vs. the Market

Here’s where things get interesting. WMB isn’t just holding its own—it’s outperforming. Over the past 12 months, it’s beaten the S&P 500, with its relative strength line ticking higher in recent weeks. Meanwhile, the energy sector as a whole has been a laggard, flirting with new 12-month relative lows. So, why is WMB shining? It’s not just an energy play; it’s an infrastructure play, and pipelines have been a bright spot within the sector.

This relative strength is a big deal. When a stock outperforms both the broader market and its sector, it’s like finding a diamond in a coal mine. WMB’s ability to stand out among pipeline companies further cements its case as a stock to watch.

Why Infrastructure Stocks Like WMB Matter

Let’s zoom out for a second. Why focus on infrastructure stocks like WMB in a shaky energy sector? Unlike oil and gas producers, which swing wildly with commodity prices, pipeline companies offer stable cash flows. They transport energy, not produce it, which means they’re less exposed to market volatility. In my experience, these stocks can be a safe haven when the sector gets rocky, and WMB’s technical setup suggests it’s ready to capitalize on that stability.

Infrastructure stocks are the backbone of energy—steady, reliable, and often overlooked until they surge.

Perhaps the most exciting part is WMB’s role in the broader energy infrastructure theme. As demand for natural gas grows, companies like WMB, with their extensive pipeline networks, are well-positioned to benefit. Combine that with a potential chart breakout, and you’ve got a stock that’s hard to ignore.

How to Play the Breakout

So, you’re intrigued by WMB’s potential. What’s the game plan? First, watch for a decisive close above $62. That’s the trigger for the breakout. Second, check the volume—ideally, you want a spike to confirm the move. Finally, keep an eye on the Chaikin Money Flow; if it stays positive or climbs higher, it’s a sign the bulls are still in charge.

1. Monitor the price: Wait for a close above $62 with conviction.
2. Check volume: Look for a surge to validate the breakout.
3. Track indicators: Ensure Money Flow stays bullish.

Of course, no stock is a sure thing. If WMB fails to break $62 or falls back below $52, the breakout thesis could fizzle. But with the current setup, the odds seem tilted in favor of the bulls. I’d argue this is one of those moments where patience could pay off big time.

What Could Go Wrong?

Let’s be real—no investment is without risk. The energy sector’s underperformance could drag WMB down, even with its strong setup. A broader market sell-off, unexpected regulatory changes, or a dip in natural gas demand could throw a wrench in the breakout plan. Plus, if the price fails to hold above $62 after a breakout, it might signal a false breakout, which can trap overeager investors.

That said, the technicals are compelling. The combination of a tight consolidation range, bullish volume, and relative strength makes WMB a standout. I’ve learned over the years that the best trades often come from finding strong stocks in weaker sectors—WMB fits that mold perfectly.

The Bigger Picture: Why Now?

Timing matters in the market, and WMB’s setup feels like a “right place, right time” moment. The energy sector may be lagging, but infrastructure stocks are carving out their own path. With WMB showing signs of a breakout, it’s a reminder that opportunities often hide in plain sight. Whether you’re a seasoned trader or just dipping your toes into stocks, this is one to keep on your radar.

In my view, the real magic happens when you spot a stock like WMB before the crowd piles in. The charts are hinting at something big, and if the breakout plays out, $72 could just be the start. So, what’s your next move? Will you watch from the sidelines, or jump in when the breakout hits?

The best investors don’t chase trends—they find them early and ride the wave.

– Seasoned trader

With WMB’s chart screaming potential and the energy infrastructure theme gaining traction, this could be one of those moments you look back on and say, “I’m glad I paid attention.” Keep your eyes on the $62 level, and let the charts guide your next steps.