In today’s stock of the day, let’s take a closer look at Waste Management (WM), which is nearing a potential long-term buy signal.
The stock is currently moving within the bounds of an ascending triangle pattern—a classic bullish formation. This pattern is formed by a steadily rising black uptrend line, which acts as dynamic support, and a horizontal red resistance line, capping price action at the top.
This setup signals increasing buying pressure. Each time the price approaches the red resistance, it pulls back less, forming higher lows and compressing the price action closer to the breakout point.
A daily close above the red resistance line would confirm the breakout and trigger a strong long-term buy signal. Given the persistent upward trend and repeated tests of resistance, the probability of a bullish breakout is high.
For now, traders and investors should watch closely. As long as the price stays above the black support line, the bullish scenario remains in play.