WM closes above its opening price after recovering from early selling pressure
Waste Management Inc. (WM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
WM finished the week 1.48% higher at 125.75 after surging $1.52 (1.22%) today on low volume, significantly outperforming the S&P 500 (0.18%). This is the biggest single-day gain in over two months. Today's close at 125.75 marks the highest recorded closing price ever. Trading up to $0.59 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, WM actually lost -1.10% on the following trading day. Closing above Thursday's high at 125.21, the share confirmed its breakout through the prior session high after trading up to $0.54 above it intraday.
Daily Candlestick Chart (WM as at Feb 14, 2020):
Friday's trading range has been $1.74 (1.4%), that's above the last trading month's daily average range of $1.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WM.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 125.64 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for Waste Management. Out of 28 times, WM closed higher 67.86% 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 85.71% with an average market move of 2.13%.