Waste Management (WM) - Get Waste Management, Inc. Report reported earnings and revenue on Wednesday morning that beat Street expectations. Shares closed up 1.9% in the session.

The stock had been consolidating under horizontal resistance since the beginning of the month, and now that former resistance-turned-support looks like a base from which it can continue to rally.

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The daily chart shows the stock making an all-time high in July and then pulling back and moving below its 50-day moving average in a declining channel pattern. It was able to hold above the 200-day average and this month make a small rounded bottom below resistance at the $63 level.

The stock gapped higher at the open on Wednesday, but moved back in the first 30 minutes of trading to test the resistance-turned-support level, then just as quickly regained its upward momentum, closing back up at its $64 opening price.

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Moving average convergence/divergence has made a bullish crossover. The relative strength index is above its center line. Both are indications of positive price momentum.

Volume over the last two days has been above the 50-day average of volume and the accumulation/distribution line is above its 21-period signal average. The money flow index, a volume-weighted relative strength measure, has crossed above both its center line and signal average. The increase in volume is reflecting buying interest.

The stock may experience further basing, but this time it should be above the $63 level and not below it.

Waste Management is a long candidate at its current level or after a successful retest of support, using an initial stop under the $62 level.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.