Today’s stock in focus is Waste Management, which has been riding within a well-respected channel-up formation, defined by two black trendlines. The price action has consistently respected this rising structure, with the stock advancing steadily over recent weeks.
At the beginning of June, the price tested the upper boundary of this channel, and now we’re seeing a critical retest of the lower boundary — a level that has historically acted as a reliable support. This time, however, something is different.
Previous tests of this lower black trendline were met with sharp, V-shaped reversals to the upside, signaling strong demand and a quick rejection of lower prices. Those reactions, marked clearly with arrows on the chart, demonstrated just how eager buyers were to defend this trend. But now, that buying force seems to be fading. The current test of support is lacking that signature bounce — the bearish pressure is sustained, and there’s no strong reversal so far.
This shift in behavior raises the stakes. A daily close below the lower black line would break the rising channel and trigger a sell signal, suggesting that the bullish structure has been compromised. In this case, the door opens to a deeper correction and possibly a new downtrend phase.
On the flip side, a sudden rebound — ideally a strong bullish candle that clearly lifts the price back above support — would suggest that the structure is still intact. That would be interpreted as a successful defense of the channel and could spark another rally toward the upper boundary.