WEC dominated by bears dragging the market lower throughout the day
WEC Energy Group Inc. (WEC) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
WEC finished Monday at 93.73 losing $0.64 (-0.68%) on low volume, underperforming the S&P 500 (0.27%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WEC as at Aug 10, 2020):
Monday's trading range has been $1.28 (1.35%), that's below the last trading month's daily average range of $1.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WEC. Prices continued to consolidate within a tight trading range between 92.45 and 94.99 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, 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 22nd, WEC lost -0.52% on the following trading day.
Prices are trading close to the key technical support level at 93.12 (S1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 94.99 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 92.45 where further sell stops could get triggered.
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. While it is usually interpreted as bearish, it has actually shown to be bullish for WEC Energy. Out of 67 times, WEC closed higher 56.72% 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 64.18% with an average market move of 0.74%.