SLG closes above its opening price after recovering from early selling pressure
SL Green Realty Corp (SLG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SLG ended Thursday at 48.70 edging higher $0.76 (1.59%), strongly underperforming the S&P 500 (6.24%). Trading up to $3.50 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SLG as at Mar 26, 2020):
Thursday's trading range has been $4.18 (8.6%), that's below the last trading month's daily average range of $5.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SLG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one neutral pattern, the Doji. The last time a Takuri Line showed up on March 10th, SLG actually lost -9.27% on the following trading day.
Prices are trading close to the key technical resistance level at 51.16 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 51.16 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for SL Green. Out of 57 times, SLG closed higher 56.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 61.40% with an average market move of 0.58%.