Technical Insights for WELLTOWER INC (NYSE:WELL): Is a Breakout Imminent?

Our stock screener has flagged WELLTOWER INC (NYSE:WELL) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:WELL for potential movement.

Zooming in on the technicals.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, WELL scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, WELL is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, WELL did better than 89% of all other stocks. On top of that, WELL also shows a nice and consistent pattern of rising prices.
• WELL is one of the better performing stocks in the Diversified REITs industry, it outperforms 93% of 131 stocks in the same industry.
• WELL is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so WELL is leading the market.
• In the last month WELL has a been trading in the 80.80 - 89.69 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

Our latest full technical report of WELL contains the most current technical analsysis.

How do we evaluate the setup for NYSE:WELL?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:WELL this score is currently 8:

Besides having an excellent technical rating, WELL also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 88.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 86.49, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading breakout setups.

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:WELL and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.