Don’t throw away this Waste Management chart! $WM – September 8, 2022
WM SPY
This is Scott with your Chart of the Day. I will be honest with you, I don’t get super excited about garbage companies, they’re not making headlines. Waste Management ( NYSE: WM ) isn’t going to team up with GameStop ( NYSE: GME ) anytime soon, although that would be quite funny. But this chart, here, has some definite relative strength.
If I go to the SPY ( NYSEARCA: SPY ) we can see the SPY ( NYSEARCA: SPY ) pulled back from the 200-day moving average, just over 9 percent, almost 10 percent, Waste Management ( NYSE: WM ) pulled back half that amount, it only pulled back 4 percent. So that is some pretty interesting relative strength in a relatively weak market. And so, this is a stock I definitely want to pay attention to.
As you can see, if I zoom out here, it is above all the major moving averages and near its 52-week high. And so I am going to put an alert on this chart at around 176.00 and look for a strong move through that level coming on higher than average volume. Now ideally, this chart tightens up a little bit. I would love to see this stock just go sideways, build a nice base and let the 8-day and the 21-day just kind of act like a floor.
The weekly chart here looks like a nice, as Dan Fitzpatrick would call a Phase 1 breakout, Phase 2 pullback, and Phase 3 follow-through. But as you can see we are getting close to the end of the week and we are not really near those highs yet. So it has either got to break through and do it tomorrow. Or ideally, as I said, I want to see it go sideways, build a nice base and then break through that 176.00 level.
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