VTR tanks, losing $2.35 (-3.78%) within a single day
Ventas Inc. (VTR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
VTR finished Tuesday at 59.75 tanking $2.35 (-3.78%), notably underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over three months. Today's close at 59.75 marks the lowest recorded closing price since January 10th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 61.64, Ventas confirmed its breakout through the prior session low after trading up to $2.12 below it intraday.
Daily Candlestick Chart (VTR as at Apr 16, 2019):
Tuesday's trading range has been $2.57 (4.14%), that's far above the last trading month's daily average range of $1.17. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for VTR.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed below the 200-day moving average at 59.89 for the first time since October 15, 2018. The share ran into sellers again today around 62.09 for the third trading day in a row after having found sellers at 62.26 in the previous session and at 62.04 two days ago.
Crossing below the lower Bollinger Band for the first time since March 19th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 63.04 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on March 19th, VTR actually gained 0.98% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ventas. Out of 403 times, VTR closed higher 55.09% 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 58.81% with an average market move of 0.63%.