Chart of the Day: A Close Look at Our Newest Holding
There's a divergence, but will it matter?
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We recently welcomed Welltower WELL to TheStreet Pro Portfolio as we had it in our Bullpen for a long while waiting for our moment to add. The stock has been in a nice, tight consolidation at a higher level base, which you like to see after a sharp runup. That happened in mid-summer, with the stock rallying more than 20% in about six weeks.
Now, the indicators seem to reflect the trend is not going to improve. Stochastics are headed down, money flow is bearish and the MACD (moving average convergence/divergence) recently crossed over bearish. So, there is a divergence here as we see the chart still bullish.
Will this divergence matter? Eventually something needs to be rectified, but for now we defer to the price action, which remains somewhat bullish here. If there is a sudden breakout we see this stock making a run at $190.
We like Welltower in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
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At the time of publication, TheStreet Pro Portfolio was long WELL.
