WELL finds buyers again around 59.75
Welltower Inc. (WELL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
WELL ended Wednesday at 59.87 losing $0.84 (-1.38%) on high volume, underperforming the S&P 500 (-0.46%). Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (WELL as at Sep 16, 2020):
Wednesday's trading range has been $1.67 (2.74%), that's below the last trading month's daily average range of $1.90. 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 WELL.
In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 59.47 (S1). After having been unable to move lower than 59.87 in the previous session, the stock found buyers again around the same price level today at 59.75. The last time this happened on September 10th, WELL actually lost -1.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 61.44 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 58.22 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Welltower. Out of 101 times, WELL closed higher 53.47% 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 68.32% with an average market move of 1.05%.