SLG unable to break through key resistance level
SL Green Realty Corp (SLG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SLG finished the month 17.02% higher at 49.29 after losing $0.79 (-1.58%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading $0.65 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SLG as at Jun 30, 2020):
Tuesday's trading range has been $1.61 (3.23%), that's far below the last trading month's daily average range of $3.58. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SLG.
Unable to break through the key technical resistance level at 50.31 (R1), the market closed below it after spiking up to 50.42 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 25th, SLG lost -6.59% on the following trading day. The share was sold again around 50.42 after having seen highs at 50.12, 49.94 and 50.36 in the last three trading sessions. Obviously there is something going on at that level.
SL Green shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 46.50 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SL Green. Out of 116 times, SLG closed higher 56.03% 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 10 trading days, showing a win rate of 58.62% with an average market move of 0.87%.