WEC pops to highest close since June 8th
WEC Energy Group Inc. (WEC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WEC finished the month 8.68% higher at 95.26 after gaining $0.07 (0.07%) today on low volume, underperforming the S&P 500 (0.77%). Today's close at 95.26 marks the highest recorded closing price since June 8th. Trading up to $0.83 lower after the open, WEC Energy managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 16th, WEC gained 3.16% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WEC as at Jul 31, 2020):
Friday's trading range has been $1.79 (1.89%), that's slightly above the last trading month's daily average range of $1.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WEC. Prices continued to consolidate within a tight trading range between 93.96 and 95.75 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 95.82 (R1). After having been unable to move above 95.56 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 95.75.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test June's close-by high at 95.82.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for WEC Energy. Out of 591 times, WEC closed higher 57.70% 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 63.28% with an average market move of 0.71%.