Mindray Medical International
We're seeing the exact same setup in shares of Mindray Medical International (MR) right now. Like WEC, this mid-cap medical device maker is forming a descending triangle pattern. The big difference here is that this setup hasn't triggered yet. Until then, the breakdown level to watch out for is support down at $30; if it gets broken, MR becomes a high-probability sell.
Not that it makes a whole lot of sense to hold on in the meantime. Shares of Mindray have been trading lower in a downtrend for a year now, down 24% since last summer -- the descending triangle setup in shares now just signals a potential acceleration in the downside risk here.
That bearish bet is being confirmed by relative strength in MR. The relative strength line has been making lower swing highs going all the way back to last September, an indication that this name has been underperforming the market this whole time. Since relative strength is statistically a very good predictor of price action on a rolling three-to-ten month time horizon, it's a red flag worth heeding from here.