WM closes below its opening price unable to hold early session gains
Waste Management Inc. (WM) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
WM finished Wednesday at 98.56 edging lower $0.09 (-0.09%), slightly underperforming the S&P 500 (0.3%). Trading $0.35 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, WM actually gained 1.31% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WM as at Feb 13, 2019):
Wednesday's trading range has been $1.01 (1.02%), that's below the last trading month's daily average range of $1.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WM.
After moving higher in the previous session, Waste Management closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 95.68.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Waste Management. Out of 35 times, WM closed higher 62.86% 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 54.29% with an average market move of 0.77%.