Waste Connections Slumps 3.31% as Bearish Engulfing Pattern Emerges, Converging Technical Indicators Signal Critical Support at $168.00–$168.32

Candlestick Theory
Waste Connections (WCN) closed the most recent session at $168.53, a 3.31% decline, forming a bearish engulfing pattern as the candle’s body extended below prior support levels. Key support appears near $168.00–$168.32, where previous consolidation occurred (e.g., 2025-12-09, 2025-12-10). Resistance is clustered around $174.00–$175.36, coinciding with recent highs from late December 2025. A breakdown below $168.00 could trigger further bearish momentum, while a rebound above $174.00 may signal a short-term reversal.

Moving Average Theory
Short-term momentum is bearish, with the 50-day moving average (calculated from the dataset) likely below the 100-day and 200-day averages, indicating a downtrend. The 200-day MA, a critical long-term benchmark, may act as a dynamic support level; if WCN’s price falls below this, it could confirm a deeper bearish phase. The current price of $168.53 appears to be trading below both the 50-day and 200-day MAs, suggesting continued weakness in the near term.

MACD & KDJ Indicators

The MACD histogram has contracted recently, reflecting declining momentum in the downtrend, while the MACD line remains below zero, reinforcing bearish bias. The KDJ oscillator (stochastic) shows oversold conditions, with %K and %D lines near 30, indicating potential for a rebound. However, divergence between price lows and KDJ troughs (e.g., 2025-12-05 to 2026-01-07) suggests weakening bearish conviction, hinting at a possible short-term bounce.

Bollinger Bands
Volatility has widened in recent weeks, with the bands expanding as the price approached the lower band. The current close near the lower band (approx. $168.00) suggests oversold conditions, but a sustained break below this level could signal increased volatility and further downside. The middle band (20-day SMA) is likely around $173.00–$174.00, aligning with key resistance levels identified in candlestick analysis.

Volume-Price Relationship

The recent 3.31% drop occurred on elevated volume (2.01 million shares), validating the bearish move. However, volume has been inconsistent in prior corrections (e.g., 2025-12-15, 2025-12-19), suggesting mixed conviction among traders. A surge in volume on a rebound above $174.00 could confirm a shift in momentum, whereas fading volume on rallies would reinforce bearish bias.

Relative Strength Index (RSI)

The 14-day RSI is near 30, entering oversold territory, which typically signals short-term exhaustion in the downtrend. However, RSI divergence (price making lower lows while RSI bottoming out) suggests caution—while oversold readings may precede a rebound, the broader bearish context implies a potential false signal. A sustained close above $174.00 would be needed to validate RSI’s bullish implication.

Fibonacci Retracement

Key Fibonacci levels from the recent high of $176.69 to the low of $168.00 include 38.2% at $171.50 and 61.8% at $169.40. The current price of $168.53 is approaching the 61.8% retracement level, which could offer temporary support. A breakdown below $169.40 may target the 78.6% level at $167.00, while a rebound above $171.50 could reinvigorate bullish momentum.
Confluence between candlestick support at $168.00 and Fibonacci 61.8% at $169.40 suggests a critical decision point for the stock. While RSI and KDJ hint at a potential short-term rebound, the broader bearish alignment of moving averages and Bollinger Bands implies caution. Divergences in momentum indicators and inconsistent volume patterns further complicate the outlook, emphasizing the need for a confirming breakout above $174.00 to tilt the bias toward bullish.