Waste Connections raises outlook as landfill volumes improve
Waste Connections announced an upward revision to its earnings outlook, driven by improvements in landfill volumes.
The current price is located just below the 20-day high resistance level ($169.51) and is in an overheated state with an RSI of 74.9. Therefore, we will consider a cautious entry while monitoring whether it breaks through the resistance line or undergoes a pullback adjustment down to the support level ($149.39).
Since the current price is positioned just below the 20-day high resistance level of $169.51, I will take profit at $169.51 while monitoring for a breakout of the resistance line, and cut losses if the support level of $149.39 is broken.
RSI(14) is in an overheated state at 74.9, moving averages are not in a bullish alignment, trading volume is 1.05 times the 20-day average, and the volatility over the past 7 days is +10.9%.
At the time of the forecast, a conservative target return of 1.2% was set, mindful of a potential pull-back due to an overheated RSI of 74.9 and the stock price sitting just below the 20-day high resistance level ($169.51). However, positive catalysts such as improved landfill volume and upwardly revised 2027 outlooks acted strongly, ultimately resulting in an overheated performance of 10.9%. This prompts a reflection on having conservatively estimated the upside potential by being overly mindful of the overheating burden of technical indicators.
For future trades accompanied by strong earnings upgrade news, rather than setting a narrow upper limit based solely on high RSI levels or short-term resistance lines, I will apply a strategy of flexibly leaving profit-taking targets open by jointly considering the broader theme's upward trend and the ripple effect of positive catalysts.