05/30/00 Allied Waste Industries (AW)
Points to watch:
After hitting an all-time high of 31.63
in August 1998, Allied Waste's stock spent the next 19 months in a virtual
free fall, losing over 80% of its value before bottoming at 5.31 in March
2000.
The stock has built a solid base over
the past 5 months and now appears ready to move higher. On Friday
the stock gained 0.68 to close at 9.56, its highest close in 2000.
The stock moved above its 200-day moving average (8.45) on May 25th, its
first time above the average since July 1999.
Short and long term technicals are
strong. Daily RSI and stochastics are rising and are at new highs,
and daily OBV is in a sharp uptrend. Weekly stochastics has risen
above 40 from oversold, weekly OBV has turned up, and weekly RSI is
rising.
The stock has additional resistance at
10.1-10.4, a range which acted as resistance from May 1996 to February
1997. A buy signal would be given on a break above resistance at
10.4, with the next upside resistance then at 11.7, 13.3, 14.2, 15, and
16. Support is at 9, 8.2, and 7.7.
