VTR unable to break through key resistance level
Ventas Inc. (VTR) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
VTR ended Monday at 35.50 gaining $0.55 (1.57%), significantly outperforming the S&P 500 (0.38%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VTR as at Jun 01, 2020):
Monday's trading range has been $1.78 (5.07%), that's slightly below the last trading month's daily average range of $1.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VTR.
Unable to break through the key technical resistance level at 36.44 (R1), the stock closed below it after spiking up to 36.78 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on May 29th, VTR actually gained 1.57% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 34.18 where further sell stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Ventas. Out of 702 times, VTR closed higher 52.42% of the time on the next trading day after the market condition occurred.