WCN closes below its opening price unable to hold early session gains
Waste Connections Inc. (WCN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
WCN ended Wednesday at 100.20 losing $1.20 (-1.18%), underperforming the S&P 500 (-0.46%). Trading $0.95 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 101.38, the stock confirmed its breakout through the prior session low after trading up to $1.30 below it intraday.
Daily Candlestick Chart (WCN as at Sep 16, 2020):
Wednesday's trading range has been $2.62 (2.57%), that's far above the last trading month's daily average range of $1.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WCN.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 100.08 during the day, the market found support at the 50-day moving average at 100.13. The last time this happened on September 4th, WCN actually lost -0.52% on the following trading day. Waste Connections closed back below the 20-day moving average at 100.31.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 98.86 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Waste Connections. Out of 159 times, WCN closed higher 58.49% 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 62.26% with an average market move of 0.80%.