VTR finds buyers at key support level
Ventas Inc. (VTR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, VTR finished Thursday at 28.73 edging higher $0.33 (1.16%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VTR as at Mar 26, 2020):
Thursday's trading range has been $3.28 (11.2%), that's below the last trading month's daily average range of $4.50. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for VTR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on March 10th, VTR lost -13.61% on the following trading day.
After trading down to 26.66 earlier during the day, the share bounced off the key technical support level at 26.77 (S1). The failure to close below the support could increase that levels significance as support going forward.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 30.88 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Ventas. Out of 26 times, VTR closed higher 65.38% 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 57.69% with an average market move of 0.52%.