Ventas, Inc. (VTR) currently sports a 6.3% yield and could be close to bottoming -- sound interesting? Let's check out the charts and indicators.
In this daily bar chart of VTR, below, we can see how the decline in the share price has been unfolding since late June. A death (or dead) cross can be seen in early November with the 50-day moving average line declining below the flat 200-day moving average line. Prices are now looking fairly extended versus the 50-day and 200-day lines. Volume has increased significantly the past two months.
The daily On-Balance-Volume (OBV) line has been in a decline since September telling us that sellers of VTR have been more aggressive for several months. In the lower panel is the 12-day momentum study which shows equal lows in January and February despite the lower lows in price over the same time period. This difference is a bullish divergence and it can foreshadow a price recovery or even a reversal.
In this weekly bar chart of VTR, below, we can see that prices are below the declining 40-week moving average line. Prices are testing the late 2015 and early 2016 lows. The weekly OBV line is declining but it is back to its early 2016 low. The weekly Moving Average Convergence Divergence (MACD) oscillator is in a bearish mode.
In this Point and Figure chart of VTR, below, we can see the decline from $70 to under $50. A price target of $53.09 has been reached. Prices are starting to stabilize in the $51.50-$49.50 area.
Bottom line: The long side of VTR is looking attractive at these levels. Aggressive traders could look to go long VTR on a close above $52 and above $54.