well

Shares of healthcare REIT Welltower may have put in a major bottom.

WELL began this week with a 2.2% gain putting it in the top 10 S&P 500 gainers list.  This impressive move, on accelerating trade, pushed shares to new March highs.  After a extremely deep pullback from the 2017 peak, which drove shares over 20% lower, WELL is setting up for a healthy rebound.  In the near term investors should take on a much more positive view of the name. 

Trading notes:

At the early March lows WELL was the furthest its been below its 40 week moving average since early 2009. 

Since the mid February low the stock has been tracing out a bullish divergence in its daily MACD indicator.

WELL now has a very solid support zone nearby.  The top band is marked by the initial March high($54.20)as well as last week’s high($54.05).  On the downside, a close back below $52.20 would clearly violate last week’s low sending a clear warning sign that a more drawn out basing process is ahead. 

Initial upside target is the declining 50 day moving average currently resting at $57.55.

We do not have a position in WELL.