Recently TheStreet's John Persinos identified seven attractive health care REITs.
"The time is ripe to put your money in health care real estate investment trusts (REITs), an often overlooked class of investment that should provide both safety and market-beating growth this year," Persinos wrote.
Looking at these stocks' technical charts, here are four that look promising.
In this chart of VTR, we can see that prices have traded sideways since June. Dips into the $55-to-$50 area have been bought. In February, we broke below $50 -- but only temporarily. Prices have rallied above the 50-day and 200-day moving averages, and both average lines are rising. The on-balance-volume line has been rising since November, telling us that buying has become more aggressive and supportive of the price advance.
Medical Properties Trust
In this chart of Medical Properties Trust(MPW) - Get Report , we can see the start of a nice base pattern in September. Prices did briefly dip to new lows in January and February, but they have since climbed up to new highs for the move up, clearing the highs since September. Prices are above the 50-day and 200-day averages, and the slope of the 50-day has turned positive. The OBV line is slowly starting to move up.
This chart of Welltower (HCN) is a little different. This stock shows a deeper breakdown in February, but prices quickly recovered. Prices are now back above the 50-day and 200-day moving averages. The OBV line has also quickly recovered since its February low. A close above $70 for HCN will be bullish.
Universal Health Realty Income Trust
Universal Health Realty Income Trust(UHT) - Get Report shows a positive-looking chart the past year with its sideways-to-higher price action. Weakness in January and February comes at a higher price level and doesn't go to new lows for the move down. Prices are above the rising 50-day and 200-day moving averages, and the price action is very strong. The only thing to make the chart look stronger would be a rising OBV line. That might come later, but for now we see no reason to fade this price strength.