By Paul Kornfeld, CFA
1/ Simon Property Group Climbs in the Favored Zone
2/ Candlestick SPG Chart Completes a Bullish Ascending Triangle Pattern
3/ Point and Figure SPG Chart Shows a Major Breakout Underway
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1/ Simon Property Group Climbs in the Favored Zone
With treasury yields falling over the last month, interest rate sensitive sectors have been bouncing back from previous declines, including Real Estate, Financials, and Utilities. Simon Property Group Inc. (SPG) the largest owner of shopping malls has been gaining in relative strength over the last several weeks.
SPG returned to the Green Favored Zone of the SIA S&P 100 Index Report on November 16th, which we mentioned in the November 17th edition of the Daily Stock Report. Since then, the shares have climbed 8.6%, while the S&P 100 Index is up only 0.8% (no that is not a typo) over the same time frame. SPG has also continued to rise in the relative strength rankings, having moved up another four spots in the last week to 17th place.
2/ Candlestick SPG Chart Completes a Bullish Ascending Triangle Pattern
After spending much of 2022 under distribution, Simon Property Group (SPG) shares bottomed out in October of 2022 near $80.00 per share. The shares then spent a year building a long base below $125.00. Over that time, the shares established a series of higher lows that indicated strengthening underlying investor support.
Recently, the shares have staged a major breakout, blasting through $125.00 to complete a bullish Ascending Triangle pattern and signal the start of a new uptrend. Next potential resistance may appear in the $150.00 to $155.00 range where a round number, measured move and the 2021 peak cluster. Additional measured resistance on trend may emerge near $170.00. Initial support may appear near the $125.00 recent breakout point, then the 10-week (approximately 50-day) moving average near $115.00.
3/ Point and Figure SPG Chart Shows a Major Breakout Underway
A 2022 selloff in Simon Property Group (SPG) shares was finally contained in October of that year by a long-term 45-degree uptrend support line. In late 2022 and into the first part of 2023, SPG shares staged an initial recovery rally. The shares then spent most of 2023 from February to November, consolidating those gains between $95.00 and $125.00.
Back in October, the shares established another higher low and haven’t looked back since. This month, SPG has broken out over $125.00, to trade at its highest level since February of 2022. The shares have also completed a bullish Spread Triple Top pattern, signaling the start of a new up-leg.
Next potential upside resistance may appear in the $149.05 to $155.10 range where a vertical count, a horizontal count, and the November 2021 peak cluster around the $150.00 round number. Initial support appears near $112.95 based on a 3-box reversal.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, SPG is exhibiting short-term strength across all asset classes.
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Originally posted 6th December 2023
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