This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Toxic Stocks You Should Sell Before the Next Drop

Stocks in this article: WECPFEMRBSXAAL

Wisconsin Energy

The last quarter has been rough for shareholders in $10 billion energy utility Wisconsin Energy (WEC). In those last three months, this name had lost a whopping 11% of its value. By comparison, that makes the S&P's modest 2.5% run look like a breakneck rally. The problem is that WEC looks primed for an even bigger drop in August.

WEC spent the last few months forming a descending triangle setup, a price pattern formed by horizontal support below shares at $44.50 and downtrending resistance to the upside. Basically, as WEC bounced in between those two technical levels, this utility has been getting squeezed closer and closer to a breakdown below that $44.50 price floor. That level got violated in yesterday's session, signaling a sell in WEC.

Read More: 8 Stocks George Soros Is Buying

From here, the next-closest support level of note is down at $41. Bargain-hunters should wait for a bounce off of that level before trying to step in front of sellers on WEC. Chasing yield could be hazardous to your health in shares of this large-cap utility stock.

2 of 6
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%