WCN closes above its opening price after recovering from early selling pressure
Waste Connections Inc. (WCN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WCN finished the week 4.2% higher at 103.81 after gaining $1.01 (0.98%) today on high volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 103.81 marks the highest recorded closing price ever. Trading up to $1.04 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, WCN gained 2.50% on the following trading day. Closing above Thursday's high at 103.39, the share confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (WCN as at Feb 14, 2020):
Friday's trading range has been $1.76 (1.7%), that's above the last trading month's daily average range of $1.34. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WCN.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 99.07.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Waste Connections. Out of 597 times, WCN closed higher 52.60% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.14% with an average market move of 0.93%.