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.