Jim Cramer was bullish on Ventas Inc. (VTR) ahead of its earnings release this coming Friday. Mad Money viewers got Jim's fundamental spin but let's take a few minutes to look at the charts and technical indicators to round out the picture.
In this daily bar chart of VTR, below, we can see an uptrend from April with higher lows in October and early January. Prices made higher highs to December and new highs in February will refresh the trend. VTR is trading above the rising 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line is leading the way higher and has already made a new high for the move up. A rising OBV line tells me that buyers of VTR have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of VTR, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line line is bullish and so is the MACD oscillator.
In this Point and Figure chart of VTR, below, we can see an upside price target of $82. A trade at $65 will be a nearby breakout and trades at $67 and $68 will be additional bullish signals.
Bottom line strategy: VTR is poised to move higher with a target in the low $80's. Traders should go long on strength risking below $60.
