WM pushes through Wednesday's high
Waste Management Inc. (WM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WM ended Thursday at 97.68 gaining $6.74 (7.41%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 93.70, the stock confirmed its breakout through the prior session high after trading up to $4.52 above it intraday.
Daily Candlestick Chart (WM as at Mar 26, 2020):
Thursday's trading range has been $7.47 (8.22%), that's slightly above the last trading month's daily average range of $6.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WM.
Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, WM actually lost -5.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Waste Management. Out of 552 times, WM closed higher 56.34% 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 62.50% with an average market move of 0.50%.