National Health Investors ( NHI) is a real estate investment trust specializing in senior housing and medical facilities. Let's check out the charts to see if there's a "senior moment" here for investors.
In the daily bar chart of NHI, below, we can see that the shares repeatedly tested the $52 to $50 area from October to May. The daily On-Balance-Volume (OBV) line was steady this whole time and has begun to creep higher telling us that buyers are becoming more aggressive. Prices are trading above the rising 50-day moving average line and above the bottoming 200-day line.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line.
In the weekly Japanese candlestick chart of NHI, below, we can see that the shares are emerging from a ten-month sideways consolidation pattern. NHI is trading above the rising 40-week moving average line. The weekly OBV line is moving up from a similar sideways pattern to support and confirm the price gains.
The MACD oscillator is now crossing above the zero line for a buy signal.
In this daily Point and Figure chart of NHI, below, we can see an upside price target in the $83 area. A trade at $62 will refresh the uptrend.
In this weekly Point and Figure chart of NHI, below, we can see the same $83 price target as the daily chart above.
Bottom-line strategy: Traders could go long on strength above $62. Risk to $57 while looking for gains to the $83 area.
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This is a tough stock or sector (memory) of the industry to love right now.
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