WM closes above its opening price after recovering from early selling pressure
Waste Management Inc. (WM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
WM ended the month 3.48% higher at 109.60 after edging higher $0.22 (0.2%) today, underperforming the S&P 500 (0.77%). Trading up to $0.55 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
Friday's trading range has been $1.36 (1.25%), that's below the last trading month's daily average range of $1.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Tuesday, WM gained 1.98% on the following trading day.
Prices are trading close to the key technical resistance level at 110.13 (R1). After having been unable to move above 109.66 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 109.62.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 110.13 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Waste Management. Out of 462 times, WM closed higher 56.93% 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 62.55% with an average market move of 0.66%.