Welltower Rises 3.06% To $172.55 Marking 4.46% Two-Day Gain On Bullish Technicals

Welltower (WELL) closed at $172.55 on September 23, 2025, rising 3.06% and marking its second consecutive positive session, resulting in a two-day gain of 4.46%. This strong performance forms the latest data point for a technical assessment incorporating multiple methodologies.
Candlestick Theory
The recent sessions form a "bullish engulfing" pattern off the $165.19 low established on September 19th. The subsequent two strong up-days suggest buyer conviction. Key resistance is evident near the $170 psychological level, reinforced by price rejections seen on June 3rd and June 24th earlier this year. Strong support rests between $165.00-$166.50, confirmed by the bounce on September 19th and reinforced by closing levels on August 13th and August 22nd. The gap down from $168.92 on September 15th to $165.21 on September 16th has now been entirely closed, negating that technical weakness.
Moving Average Theory
The 50-day MA (approx. $163.80), 100-day MA (approx. $158.20), and 200-day MA (approx. $150.30) exhibit a bullish configuration: shorter MAs above longer MAs and all sloping upwards. Price trading comfortably above all three confirms a strong underlying uptrend. Notably, the 50-day MA provided reliable support during the August consolidation and again in late September. The rising 200-day MA signifies improving long-term fundamentals.
MACD & KDJ Indicators
The MACD (12,26,9) line recently crossed bullishly above its signal line and remains positive, albeit showing slight momentum deceleration as the price approached $173. The KDJ oscillator currently displays J-line near 85, recovering from overbought territory (above 80) on September 22nd. While recent KDJ values suggested overbought conditions, the price consolidation within the resistance zone served to temper this, preventing a severe correction signal and allowing the J-line to cool moderately while maintaining positive momentum. The lack of significant negative divergence following the overbought reading is constructive.
Bollinger Bands
Price has recently surged towards the upper Bollinger Band ($172.30 based on 20-day SMA and SD), indicating strength but also approaching a potential near-term resistance point. Bandwidth contracted significantly prior to the breakout above $167 resistance, signaling the preceding consolidation. The expansion that followed accompanies the upward price surge. Price trading above the center band (20-day SMA, approx. $167.75) reinforces the short-term bullish bias. A sustained close well above the upper band could suggest an overextended move, warranting caution.
Volume-Price Relationship
While the most recent up-day (Sept 23) featured volume slightly below the prior day’s, the preceding large gap-fill rally on September 22nd occurred on substantially higher volume, validating the breakout above the $167 resistance level. Notably, the significant selling volume during the $170 rejection attempts in June is absent during the current ascent toward that level, suggesting less intense selling pressure overhead compared to previous attempts. However, average volume over the last two weeks is below the peak volume seen during significant moves earlier in the year (e.g., late March, late July), demanding confirmation for any sustained move beyond $170.
Relative Strength Index (RSI)
Calculated RSI(14) currently resides around 65. While moving away from the neutral zone (50), it avoids the immediate overbought territory (>70), indicating room for potential upside before signaling excessive bullishness. Earlier instances of RSI exceeding 70 in July and August resulted in brief consolidation rather than sharp reversals. Current RSI readings lack negative divergence against price highs, suggesting underlying momentum aligns with the price trend.
Fibonacci Retracement
Applying Fibonacci retracements to the significant swing low on July 29th, 2025 ($158.29) and the swing high on November 29th, 2024 ($140.29 – note data order) reveals key levels:
23.6% retracement: $154.37 (tested as resistance in early August, now support)
38.2% retracement: $148.58 (coincides with major lows in May)
50.0% retracement: $143.75 (major support zone in April)
61.8% retracement: $138.92 (early 2024 resistance/support)
The move from $158.29 has successfully challenged the 0.00% level ($140.29 old high) and 23.6% level. The next significant resistance extends toward the 161.8% extension level ($175.00-$176.50).
Conclusion
Welltower's technical posture remains predominantly bullish, supported by rising moving averages, constructive MACD/KDJ readings, and strong volume on key breakout days. Candlestick action confirms resilience near $165-$166.5 support. While immediate resistance near $170 (historical significance) and the current approach to the Bollinger Band upper limit ($172.30) suggest potential for short-term consolidation or minor pullback, the overall trend favors the upside. Key confluence exists around $167 (recent breakout point, near 50-day MA, Bollinger mid-band, VWAP support), which is now critical support. Successfully overcoming the $170 barrier on strong volume would target the $175-$177 zone (Fibonacci extension/Bollinger projection). Conversely, a decisive break below $167 would warrant reassessment of the short-term momentum, potentially signaling a deeper retest of the $165-$166.50 support zone. The probability remains higher for continued upside attempts following consolidation near the $170-$173 area.