VTR closes below its opening price unable to hold early session gains
Ventas Inc. (VTR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
VTR ended Wednesday at 45.33 flat, slightly outperforming the S&P 500 (-0.46%). Trading $0.70 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VTR as at Sep 16, 2020):
Wednesday's trading range has been $1.49 (3.26%), that's slightly above the last trading month's daily average range of $1.42. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VTR.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
After trading down to 44.94 earlier during the day, the market bounced off the key technical support level at 44.95 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 1st, VTR gained 4.94% on the following trading day. After having been unable to move above 46.49 in the prior session, Ventas ran into sellers again around the same price level today, missing to move higher than 46.43.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 46.49 where further buy stops might get triggered.
Among the five 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. Out of 414 times, VTR closed higher 58.94% 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 57.00% with an average market move of 0.24%.