WM finds buyers at key support level
Waste Management Inc. (WM) Technical Analysis Report for Oct 12, 2018
WM ended the week -1.57% lower at 88.55 after gaining $0.51 (0.58%) today on high volume, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WM as at Oct 12, 2018):
Friday's trading range has been $1.21 (1.36%), that's slightly above the last trading month's daily average range of $1.02. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WM.
One bullish candlestick pattern matches today's price action, the Hammer.
After trading down to 87.79 earlier during the day, Waste Management bounced off the key technical support level at 88.54 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, WM actually lost -1.06% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 90.37.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Waste Management. Out of 484 times, WM closed higher 58.06% 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 64.26% with an average market move of 0.87%.