Chart of the Day: Waste Management Dips
A minor sell-off below good support, but the stock has found some buyers.
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Recently, we profiled Waste Management WM and were encouraged by the multiple holds of support. That level was around the $222 to $226 area, we felt it was strong enough to hold off sellers.
That was incorrect as a sharp down day about six sessions ago broke that support.
We continue to see the stock in a downtrend and the indicators support that thesis. With a series of lower highs and now lower lows, the definition of a downtrend in place we won't guess as to where it will end. However, the last few sessions seem to be building a small base at the $215 to 217 area, which could be the sign of buyers coming in to add shares.
Money flow remains a challenge, stochastics (momentum) is bearish and the parabolic stop and reverse (SAR) remains poor. A move back to the $225 to $228 zone would at least turn the chart neutral and get it on its way to becoming bullish. Lower levels however would set up a test at $210.
We like Waste Management in TheStreet Pro Portfolio and rate it a two, or stockpile on pullbacks.
At the time of publication, TheStreet Pro Portfolio was long WM.
