Chart of the Day: Welltower Offers Bulls a Good Opportunity
The stock was on fire the previous month but now is cooling off a bit.
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A strong run by Welltower (WELL) to start October has come to a brief end.
The stock ripped higher on strong volume for about two months and ran some 23% higher during that stretch. However, the weight of good relative strength and an overbought condition were just too much to handle so now the stock has fallen a bit but just down to some good support.
There are layers of support (50-day, 100-day MAs) all the way down to the 200-day MA. Even more, there is fibonacci support at current levels. We see a sell signal on the MACD, which is present following the recent decline.
There are still higher highs and higher lows in the chart, so the uptrend is still intact. Money flow has fallen sharply however, and the momentum is leaking (stochastics). Candles are teal, which says "cautiously bullish" on the GoNoGo composite of indicators.
We would just call this a garden variety sell off here, giving those who want to buy a pullback another good opportunity. Recall the last two dips (arrows on the top pane) were bought up aggressively just before the stock made a nice run higher.
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.
