Waste Management Jumps 3.36% On Bullish Breakout With Heavy Volume

Waste Management (WM) rose 3.36% to $235.56 on July 29, 2025, closing near session highs after testing significant resistance at $240.39 on elevated volume of 3.65 million shares, well above the 50-day average. The price action reflects a bullish breakout from consolidation, warranting multi-indicator analysis.
Candlestick Theory
The most recent session formed a long-bodied bullish candle after three consecutive minor bearish candles, signaling renewed accumulation. The upper wick to $240.39 establishes immediate resistance, while the low of $229.52 aligns with the June swing high, creating strong support. This structure suggests a potential bullish continuation pattern if $240.39 is decisively breached.
Moving Average Theory
WM maintains a bullish stacked configuration, trading above all key moving averages (50-day at $230.80, 100-day at $227.40, and 200-day at $220.25). The 50-day MA recently provided support during July's pullback, while the 100-day/200-day MAs exhibit positive separation. This alignment confirms the primary uptrend, though a sustained break below the 50-day MA would warn of trend weakening.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover above the signal line with histogram expansion, confirming renewed momentum. KDJ readings (K:82, D:75, J:96) indicate overbought territory, though such levels can persist in strong uptrends. No bearish divergence is present as both indicators align with the new price high, but overbought KDJ warrants monitoring for potential short-term exhaustion.
Bollinger Bands
Price rebounded from the lower band ($228) in mid-July and now tests the upper band ($238) after bands contracted through June, indicating a volatility breakout. The expansion phase supports the current bullish leg. A close above the upper band would signal extension potential, while rejection could retest the 20-day midline ($232).
Volume-Price Relationship
The breakout was validated by volume surge (3.65M shares) exceeding the 50-day average by 112%, confirming institutional participation. Volume expanded on each up day during the 3.36% rally, while fading volume accompanied consolidation periods. This demonstrates robust accumulation without distribution signals.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory but with room for extension before hitting the 70 warning threshold. Notably, RSI made a higher low in late July while price tested $225, showing positive divergence that foreshadowed the current advance. This underlying strength suggests pullbacks should remain shallow.
Fibonacci Retracement
Applying Fib levels to the 2024 low ($200.25) and 2025 high ($240.39) reveals critical thresholds: 23.6% ($230.92), 38.2% ($225.05) and 50% ($220.32). The July pullback held firmly above the 23.6% retracement ($230.92), reinforcing this as major support. The recent bounce aligns with this level, highlighting its technical relevance.
Confluence & Divergence Observations
Strong confluence exists between the Fibonacci 23.6% support, volume-backed reversal, and moving average cluster near $230. This harmonic defense underscores the level's importance. Minor divergence appears in KDJ overbought readings against new price highs, suggesting near-term consolidation risk at the psychological $240 barrier. However, MACD confirmation and volume participation maintain bullish bias overall.