SPG closes above its opening price after recovering from early selling pressure
Simon Property Group Inc. (SPG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SPG finished the week -1.49% lower at 138.92 after edging higher $0.26 (0.19%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.99 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above 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 (SPG as at Feb 14, 2020):
Friday's trading range has been $1.40 (1.01%), that's far below the last trading month's daily average range of $3.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SPG.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on January 15th, SPG gained 0.98% on the following trading day.
Prices are trading close to the key technical resistance level at 139.29 (R1).
While Simon Property is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 136.51 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Simon Property. Out of 132 times, SPG closed higher 56.82% 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 64.39% with an average market move of 0.92%.