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5 Toxic Stocks You Should Sell Before the Next Drop

Wisconsin Energy

The last quarter has been rough for shareholders in $10 billion energy utility Wisconsin Energy (WEC - Get Report). 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.

Must Read: 5 Big Stocks to Buy for Tactical Gains

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.

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AAL $33.21 -4.00%
BSX $21.80 0.11%
MR $27.94 0.25%
PFE $33.42 -0.83%
WEC $60.08 1.90%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.16 -12.21 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

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