VTR finds buyers at key support level
Ventas Inc. (VTR) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VTR finished the week 0.58% higher at 53.31 after edging lower $0.05 (-0.09%) today, notably underperforming the S&P 500 (1.42%). Today's close at 53.31 marks the lowest recorded closing price since October 5th. Closing below Thursday's low at 53.34, the stock confirmed its breakout through the previous session low after trading up to $0.54 below it intraday.
Daily Candlestick Chart (VTR as at Oct 12, 2018):
Friday's trading range has been $1.02 (1.9%), that's slightly above the last trading month's daily average range of $1.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VTR.
After trading down to 52.80 earlier during the day, the share bounced off the key technical support level at 53.28 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 24th, VTR actually lost -0.57% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Ventas Inc. Out of 439 times, VTR closed higher 56.95% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.95% with an average market move of 0.38%.