SPG dominated by bears dragging the market lower throughout the day
Simon Property Group Inc. (SPG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SPG finished the month 18.51% higher at 68.38 after edging higher $0.25 (0.37%) today, strongly underperforming the S&P 500 (1.54%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (SPG as at Jun 30, 2020):
Tuesday's trading range has been $3.93 (5.51%), that's below the last trading month's daily average range of $5.90. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 26th, SPG actually gained 10.06% on the following trading day.
Prices are trading close to the key technical support level at 65.09 (S1).
Simon Property 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 close-by swing high at 72.11 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Simon Property. Out of 277 times, SPG closed higher 54.51% 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 53.79% with an average market move of 0.19%.