SLG finds buyers around 45.59 for the third day in a row
SL Green Realty Corp (SLG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLG ended the month -5.66% lower at 46.50 after losing $0.81 (-1.71%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SLG as at Jul 31, 2020):
Friday's trading range has been $1.69 (3.57%), that's below the last trading month's daily average range of $2.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SLG.
Prices are trading close to the key technical support level at 45.12 (S1). Prices are trading close to the key technical resistance level at 48.27 (R1). The market found buyers again today around 45.59 for the third trading day in a row after having found demand at 45.66 in the prior session and at 46.02 two days ago. The last time this happened on April 23rd, SLG actually lost -2.17% on the following trading day.
SL Green shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 48.89 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 44.72 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 41.66.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SL Green. Out of 570 times, SLG closed higher 53.86% 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 56.14% with an average market move of 0.42%.