MACD is a trending indicator. It tells us at a general level whether a stock is in an uptrend or a downtrend. This is the first assessment you should make on a stock. If it's trending up, you want to be long. If it's trending down, you want be short.

Stochastic indicates short-term fluctuation. It displays the short-term movement of a stock.

So MACD tells you whether you want to be long or short, and stochastic helps you pinpoint opportunities to trade in the direction of that trend.

When WLA (which has been in a strong uptrend for most of its adult life) crossed below the bottom reference line on the stochastic indicator graph in mid-April, it became short-term oversold.

Remember this simple rule:

  Long-term Uptrend
+ Short-term Oversold
  ---------------------
  Good Buying Opportunity!

The oversold condition on stochastic in early June looks to have been a bad signal. One tip-off was the heavy selling leading in to the oversold condition. Investors bailed out in droves right as the MACD green trending bar appeared (which also appears to have been a bad signal). This happens.