Waste Connection (WCN) stock was stuck in a wide-range consolidation zone between $135 and $145.30 since the beginning of May 2023. The stock price consolidated for more than 5 months. WCN stock attempted thrice to rise and close above $146 but was unsuccessful.
During mid-August, the stock price faced strong rejection from $142.50, which induced negative sentiment in the market, and WCN stock started to melt. The asset price gained enough bearish momentum to perform a breakout from the consolidation.
On September 29, Waste Connection stock broke the support level of $135 and closed below it. The last two candles have been strongly bearish. However, the last candle closed with a long lower wick, facing rejection from $131.
If bears can push the price below the support level of $131, the stock price may melt down toward the next support level of $127. On the other hand, if the WCN stock price can form strong support at $131, it might rise and retest the $135 support turned resistance level.
Waste Connection to Report its Q3 Earnings
Waste Connection will release its third-quarter earnings report on October 25th, 2023. The consensus has estimated the earnings per share to be $1.17 and the revenue to be $2.09 Billion.
Waste Connection stated that it now expects revenue in 2023 to be about $8.03 Billion, down $25 Million from its previous forecast due to decreased fuel surcharges. It also expects a net income of about $931 Million, down $30 Million from its original guidance released in February.
Will WCN Stock Price Stay Above $131?
The stock price has melted below 20, 50, 100, and 200-day exponential moving averages, suggesting bearish momentum. The Chaikin money flow score has dropped below the 0 mark and stands at -0.22, indicating weakness in the market.
The relative strength index hovers just above the 30 mark and will soon move into an oversold region if bearish momentum prevails. On October 2, it hit an RSI reading of 29.4, but after facing rejection from $131, it bounced back above the 30 mark. Entering into an oversold zone would indicate chances of reversal for the price.
Waste Connection has been rising powerfully and consistently over the last 10 years. It noted a growth of over 390% in this period, which is impressive considering its size.
Even though the growth lagged in recent years, the trajectory is still bullish, and the stock is highly resilient against weak markets and dips. Bulls should protect the price from falling below $131, which might lead to a meltdown toward $127.
Major support: $131 and $127
Major resistance: $142.50 and $145.30
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