VTR climbs to highest close since April 9th
Ventas Inc. (VTR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, VTR finished the week 20.52% higher at 33.71 after gaining $0.78 (2.37%) today on low volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 33.71 marks the highest recorded closing price since April 9th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 33.33, the stock confirmed its breakout through the previous session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (VTR as at May 22, 2020):
Friday's trading range has been $0.82 (2.48%), that's far below the last trading month's daily average range of $1.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VTR.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 4th, VTR actually lost -0.73% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 32.17 where further sell stops could get activated. Further buying might move prices higher should the market test April's nearby high at 36.44.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Ventas. Out of 18 times, VTR closed higher 61.11% 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 nine trading days, showing a win rate of 55.56% with an average market move of 0.63%.