WM closes within prior day's range after lackluster session
Waste Management Inc. (WM) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WM finished Tuesday at 108.82 edging lower $0.16 (-0.15%), underperforming the S&P 500 (0.36%). Trading up to $0.38 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, WM actually lost -0.57% 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 Aug 04, 2020):
Tuesday's trading range has been $0.96 (0.89%), that's far below the last trading month's daily average range of $1.68. 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.
Prices are trading close to the key technical resistance level at 109.06 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 109.96 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 107.30 where further sell stops could get activated.
Among the five 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 461 times, WM closed higher 56.83% 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 62.69% with an average market move of 0.67%.