WCN dominated by bulls lifting the market higher throughout the day
Waste Connections Inc. (WCN) Technical Analysis Report for Apr 02, 2020 | by Techniquant Editorial Team
WCN ended Thursday at 76.38 gaining $1.57 (2.1%), slightly underperforming the S&P 500 (2.28%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 75.69, the market confirmed its breakout through the previous session high after trading up to $0.98 above it intraday.
Daily Candlestick Chart (WCN as at Apr 02, 2020):
Thursday's trading range has been $2.77 (3.74%), that's far below the last trading month's daily average range of $4.84. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WCN. Prices continued to consolidate within a tight trading range between 73.29 and 77.90 where it has been caught now for the whole last trading week.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 76.52 (R1), the share closed below it after spiking up to 76.67 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Tuesday, WCN lost -3.47% on the following trading day. After having been unable to move lower than 73.29 in the previous session, Waste Connections found buyers again around the same price level today at 73.90.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 77.90 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 73.29 where further sell stops could get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Waste Connections. Out of 65 times, WCN closed higher 56.92% 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 64.62% with an average market move of 1.32%.