Chart of the Day: Welltower Is Ready to Break to the Upside
Here's when we'd consider adding this healthcare infrastructure REIT to the portfolio.
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Bullpen name Welltower WELL continues to pop up on our radar screen. With rates in the market (bond) starting to come down gently before any Federal Reserve monetary policy cuts, the REIT group has taken full advantage of the loan-friendly environment.
Welltower operates as a healthcare REIT, a somewhat more stable segment of commercial real estate. While not all REITS are alike, we have found Welltower to be quite strong and with only moderate volatility, unlike many of its peers.
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The chart shows a nice pattern of higher highs, higher lows. More recently the stock has been moving sideways, burning off an overbought reading as it creates a nice, firm base. That could be considered bullish, as we recall "The bigger the base, the higher in space" (Louise Yamada).
Money flow is much improved (bottom pane), while stochastics just crossed over for bullish signal. Parabolic SAR (stop and reverse) has been strong for weeks and remains in bullish mode (dots on the top pane).
We are looking for an opportunity to add this name, perhaps on the next pullback.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
