Ventas Inc. (VTR) was mentioned during the Lightning Round on Mad Money last night. Let's check out the charts and indicators to see if we can craft a successful strategy in this current market environment.
In this daily bar chart of VTR, below, we can see that prices had a good rally from a late April low but the correction to the downside since early September is deeper than I would normally like to see. Prices are trading below the declining 50-day moving average line and this month have crossed above and below the declining 200-day line. The On-Balance-Volume (OBV) line has moved up and down with the price action and currently shows a rise. The Moving Average Convergence Divergence (MACD) has crossed to the upside from below the zero line for a cover shorts buy signal.
In this weekly bar chart of VTR, below, we can see a wide-swinging price decline from the middle of 2016. Prices are above the declining 40-week moving average line at this juncture. The weekly OBV line shows a small up-tick so we would hold off judgement right now. The MACD oscillator is pointed down and is close to a sell signal.
In this Point and Figure chart of VTR, below, we can see an upside price target of $60.75. A decline back to $52.57 would probably be negative.
Bottom line strategy: with the broad market slumping it will be harder for individual names to start rallies. Traders and investors should keep VTR on their shopping list and wait for a bigger base to develop.
