Waste Connections Jumps 3.11% On Heavy Volume As Technicals Signal Bullish Continuation

Waste Connections (WCN) closed at $191.84, rising 3.11% on July 29, 2025, with trading volume of 1.81 million shares. This decisive move above key technical levels prompts a comprehensive multi-indicator analysis of the security's trajectory.
Candlestick Theory
The July 29 bullish candle closed near its session high ($191.91) after testing support at $186.38, forming a decisive breakout pattern. This follows a hammer formation on July 24 (low: $180.55), which established a critical support zone between $180.55-$182. Immediate resistance is observed at $192.72 (June 13 high), with stronger resistance at the $195-$198 consolidation zone from Q2 2025. The price structure shows higher lows since the July 2 trough of $177.60, confirming bullish bias.
Moving Average Theory
The 50-day MA (~$185) crossed bullishly above the 100-day MA (~$183) in late July, while the 200-day MA ($179) maintains upward slope. Current price trades above all three key moving averages, confirming the primary uptrend. The alignment of shorter averages above longer ones signals sustained bullish momentum. Notably, the July 24 reversal occurred precisely at the 200-day MA, demonstrating its technical relevance.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum, with the signal line crossing above zero on July 24. KDJ readings (K: 84, D: 78, J: 96) indicate overbought territory, though such levels can persist in strong trends. The stochastic %K's sharp ascent from oversold (<20) on July 3 to current levels reflects strengthening momentum. No bearish divergences are evident between price highs and oscillator peaks.
Bollinger Bands
Volatility expansion occurred as price pierced the upper band ($189.50) on July 29. Band width increased 18% from July 24 lows, confirming breakout validity. The close above the upper band suggests potential continuation, though mean-reversion pullbacks toward the 20-period moving average ($186) remain possible. The July squeeze (band width contraction) preceded the current directional move.
Volume-Price Relationship
Breakout volume on July 29 (1.81M shares) exceeded the 20-day average by 42%, validating buyer conviction. Significant accumulation occurred during the July 24 reversal (1.76M shares vs. prior 10-day avg: 1.02M). No distribution patterns appear at recent highs, with reduced volume during minor pullbacks (e.g., July 28 volume: 763K). Volume profile confirms sustainable demand.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory but hasn't exceeded the 70 threshold that historically triggered pullbacks (e.g., June 11: RSI 72 preceded consolidation). Current momentum shows room for extension before technical exhaustion. RSI divergence hasn't materialized despite higher price highs.
Fibonacci Retracement
Applying Fib levels to the April 3 high ($201.66) and July 2 low ($177.60) shows price recently reclaimed the 61.8% retracement ($192.30). The current breakout targets the 78.6% level ($196.50), with the April high as ultimate resistance. Support aligns at the 50% retracement ($189.60), converging with the 50-day MA and July 25 low, creating a high-probability support zone.
Synthesis
Technical confluence appears at $189-$191 (50-day MA, Fib 50%, and Bollinger mid-band) and strengthens at $185-186 (100-day MA, July consolidation high). The most recent breakout shows agreement across momentum (MACD), volatility (Bollinger), and participation (volume). Divergence concerns are limited to RSI nearing overbought territory and KDJ extremes, though neither currently shows reversal signals. The evidence suggests bullish continuation toward $196-$198 resistance, contingent on sustained closes above $190. A reversal below $185 would violate multiple support levels and invalidate the breakout thesis.