Technical Setup: WASTE MANAGEMENT INC (NYSE:WM) Appears Poised for a Breakout.

A possible breakout setup was detected on WASTE MANAGEMENT INC (NYSE:WM) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:WM.

In-Depth Technical Analysis of WM

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 9 out of 10 to WM. Both in the recent history as in the last year, WM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that WM is one of the better performing stocks in the market, outperforming 86% of all stocks.
• WM is one of the better performing stocks in the Commercial Services & Supplies industry, it outperforms 75% of 83 stocks in the same industry.
• WM is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so WM slightly outperforms the market at the moment.
• In the last month WM has a been trading in the 213.50 - 239.32 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Check the latest full technical report of WM for a complete technical analysis.

How do we evaluate the setup for WM?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for WM is 8:

Besides having an excellent technical rating, WM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 232.79. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 228.18, a Stop Loss order could be placed below this zone.

How can WM be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.