SLG closes above its opening price after recovering from early selling pressure
SL Green Realty Corp (SLG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SLG finished Wednesday at 51.24 gaining $1.34 (2.69%), notably outperforming the S&P 500 (-0.46%). Today's close at 51.24 marks the highest recorded closing price since June 23rd. Trading up to $1.08 lower after the open, SL Green managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 4th, SLG actually lost -4.35% on the following trading day. Closing above Tuesday's high at 51.20, the share confirmed its breakout through the prior session high after trading up to $0.95 above it intraday.
Daily Candlestick Chart (SLG as at Sep 16, 2020):
Wednesday's trading range has been $3.09 (6.16%), that's far above the last trading month's daily average range of $2.26. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SLG.
Crossing above the upper Bollinger Band for the first time since August 10th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 47.85 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's close-by high at 53.49.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for SL Green. Out of 164 times, SLG closed higher 51.83% 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 56.71% with an average market move of 0.39%.