Last up is Ventas (VTR - Get Report), a $16 billion senior housing and healthcare REIT that's been stuck in an uptrending channel since the August low in the broad market. Basically, the channel puts Ventas in a range between a dynamic support level to the downside, and a dynamic resistance level to the upside. In real world terms, that means that we've got a very good picture of Ventas' high-probability moves right now.
An uptrending channel is a bullish pattern, but the ideal entry point for this setup comes when shares bounce off of trend line support. That's because that price gives us the greatest vertical height as shares make their next attempt at traversing the channel. Buying on a bounce of trend line support also reduces traders' risks in VTR for two reasons: It reaffirms that VTR is able to catch a bid at support (so it acts like a price floor), and it means that if VTR does fall through support, shares don't have far to go before we know we're wrong and get stopped out.
Waiting for that bounce is crucial - support levels do invariably fail in the long-term. We want to make sure that trendline support in VTR is still solid before buying.VTR shows up on a list of the Best Growth Stocks for 2012. To see this week's trades in action, check out the High Volume Technicals portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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