WEC closes above its opening price after recovering from early selling pressure
WEC Energy Group Inc. (WEC) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, WEC ended the week -1.16% lower at 67.49 after edging lower $0.03 (-0.04%) today, notably underperforming the S&P 500 (1.42%). Today's close at 67.49 marks the lowest recorded closing price since October 4th. Trading up to $0.66 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 1st, WEC gained 1.53% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WEC as at Oct 12, 2018):
Friday's trading range has been $1.00 (1.48%), that's slightly below the last trading month's daily average range of $1.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WEC.
Three candlestick patterns are matching today's price action, the Bullish Doji Star and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 66.75 (S1). Prices are trading close to the key technical resistance level at 67.94 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Doji Star" stand out. Its common bullish interpretation has been confirmed for Wisconsin Energy. Out of 5 times, WEC closed higher 80.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 80.00% with an average market move of 2.78%.