Williams Partners is in a downtrend toward its lowest levels.

The rebound recorded in the last trading sessions is not justified by Williams Partners’s fundamentals which are still fragile. Indeed, the company is highly valued: analysts estimate it has a 23.21x P/E ratio and a 3.76x EV/Sales ratio for this year. Finally, Thomson Reuters consensus has recently revised downward EPS estimates. It is often an indicator of the coming decline in profitability.

Graphically, the security is trading in a bearish trend. In the short-term, the stock has rebounded on the USD 45.9 support area toward its mid-term resistance. This rebound seems technical and is not likely to continue. Indeed, moving averages in the long-term are still in a downtrend and that argue for a continuation of the decrease in prices.

Investors can anticipate a return toward support area in the coming trading sessions. They can take a short position in Williams Partners. The target price is fixed on the pivot point at USD 47.25. A stop loss order could be placed above the USD 50.9 resistance area.