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Simon Property Group Inc. - (SPG) - November 17, 2023

Simon Property Group (SPG), the largest owner of shopping malls in the US, has benefitted from two recent trends in business news. Falling treasury yields have rekindled interest in interest rate sensitive sectors, including real estate. Meanwhile, the positive response to earnings reports from Macy’s and Gap yesterday compared with Walmart suggests that sentiment toward mall-based retailers may be more bullish than big box stores at the moment.

For six months, SPG shares swung back and forth between the green and red zones of the SIA S&P 100 Index Report. Since the beginning of November, SPG has been steadily rising up the rankings and this week it has returned to the Green Favored Zone for the first time since August. Yesterday, SPG finished in 24th place, up 4 spots on the day and up 17 positions in the last month. Simon Property Group (SPG) shares have started to attract renewed interest in recent days. Through the summer they had been drifting downward, giving back most of their spring rally. The shares held above the $100.00 round number and established two higher lows last month, a sign of continued underlying support.

This month, the shares have started to rebound, staging two breakaway gaps to the upside on increased volumes, a sign of renewed accumulation. Yesterday, SPG closed above $120.00 for the first time since July, a bullish sign. A close above resistance near $125.00 would confirm the start of a new advance and end a sideways consolidation trend between $95.00 and $125.00 which has been in place for most of the last year. Should that occur, next upside resistance may appear at a previous low near $130.00, then the $150.00 to $155.00 zone where a previous high, measured move and a big round number cluster together.

This 1% chart highlights the recent rally in Simon Property Group (SPG) shares. Last month, a downswing bottomed out at another higher low, and held a trend support line which dates back to the September 2022 market bottom, keeping its underlying uptrend intact.

Since then, accumulation has resumed and the shares have rallied up from near $100.00 toward $120.00, completing bullish Double Top and Spread Double Top breakouts along the way. The shares are currently approaching a potential resistance zone between $124.20 and $126.70 where a horizontal count and two previous highs cluster. A drive through there would confirm the start of a new advance with next potential resistance at previous lows near $131.85. Initial support appears near $115.80 based on a 3-box reversal.

With a perfect SMAX score of 10, SPG is exhibiting strength across the asset classes.

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