A Great Stock For A Shaky Market

When the market topped out in October 2018, this stock bottomed out and has rallied ever since.

While the market has been weak over the last few days, this stock has been consolidating at 52-week highs.

This is a defensive play that could continue to rally even if the market resumes its bullish rally.

HCP Inc. (HCP) is a healthcare REIT so this is not a high flyer, but if the market remains shaky, this could be a good place to play.

The current pattern sets up a nice low risk trade to catch the next leg up.

If you’re a longer-term player, you may also enjoy the dividend which is about 4.7%.

One reason to consider this as a longer-term play is that it has recently cleared its 200-week moving average. In doing so, $40 looks like a good target.

The setup is a simple breakout over the current consolidation with a stop under the low.

The breakout is over $32.30 and the stop is under $31.30.

There is significant resistance at 36.50, but with that as a target that’s 4x your risk.

And if the longer-term target of 40 is reached that’s 8x your $1 risk.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily