WEC breaks below Thursday's low
WEC Energy Group Inc. (WEC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WEC ended the week 1.58% higher at 86.14 after losing $0.54 (-0.62%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 86.55, WEC Energy confirmed its breakout through the previous session low after trading up to $0.92 below it intraday.
Daily Candlestick Chart (WEC as at May 22, 2020):
Friday's trading range has been $1.43 (1.65%), that's far below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WEC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 1st, WEC actually gained 0.57% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 87.84 where further buy stops might get triggered. As prices are trading close to May's high at 90.15, upside momentum could accelerate should the stock mark new highs for the month. Further selling might move prices lower should the market test April's close-by low at 80.56.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for WEC Energy. Out of 66 times, WEC closed higher 57.58% 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 63.64% with an average market move of 0.59%.