Traders might want to buy this short-term pullback in WEC Energy Group (WEC) as the long-term picture looks positive.
In this one-year daily bar chart of WEC, above, we can see a nice rally since June. Prices are above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has been rising and confirming the rally since June. Chartists generally consider it a good sign when volume expands in the direction of the trend. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
The strength of this long-term chart of WEC, above, is what gives us confidence in suggesting purchases of WEC as it corrects lower. Prices are above the rising 40-week moving average. The OBV line has been rising for more than a year on this time frame and the MACD oscillator is positive. Traders might try to buy WEC a little closer to $54 and use a sell stop below $52.
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Everyone seems concerned that non-technology stocks are as vulnerable as the industrials and energy stocks.
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