SPG breaks below Thursday's low
Simon Property Group Inc. (SPG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SPG finished the week 6.37% higher at 54.59 after losing $1.41 (-2.52%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 54.60, the market confirmed its breakout through the previous session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (SPG as at May 22, 2020):
Friday's trading range has been $2.52 (4.48%), that's far below the last trading month's daily average range of $4.64. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPG.
Despite a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After trading down to 53.88 earlier during the day, the share bounced off the key technical support level at 54.16 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, SPG actually lost -2.11% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 59.36 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Simon Property. Out of 455 times, SPG closed higher 56.70% 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 58.46% with an average market move of 0.33%.