WM: Major Resistance Breakthrough Analysis 4H (Apr. 28)

X FORCE GLOBAL ANALYSIS:


Waste Management (WM) is the leading provider of comprehensive waste management in North America, providing services that range from collection and disposal to recycling and renewable energy generation. In this analysis, we look at Waste Mangement's technical to spot a potential bullish breakout

Technical Analysis

- The first thing we can spot from this chart is a bullish ascending triangle.
- Prior to this pattern, we saw a bullish divergence, with prices forming lower lows, and the Relative Strength Index (RSI) forming higher lows
- Prices consolidate within the pattern for a bullish reversal, forming higher lows.
- This demonstrates that bulls have more strength in pushing prices, while bears merely maintain resistance
- We have broken through one major descending trend line resistance with a gap.
- There is, however, another descending trend line resistance that needs to be broken, in order to confirm a breakout
- We have broken through the ichimoku cloud resistance
- The 20 Simple Moving Average (SMA) is a good reference of short term trends in this case.
- We have broken through, and are trading above the 20 SMA
- The Moving Average Convergence Divergence (MACD) shows an uptrend of moving averages, and weak bearish momentum demonstrated by a quickly negated death cross.


What We Believe

Prior to the drop caused by the Corona Virus (COVID-19) crisis, Waste Management has been on a historic bull-run on the monthly. Given its price history, we believe that a potential breakout could mark the beginning of a bullish trend reversal.

Trade Safe.