Simon Property Group Inc. (SPG) - December 6, 2023
At SIACharts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds, and exchange traded funds daily and rank them by relative strength by who is winning the most in their respective universes. The top 25% of investments are in the Green Favored Zone, 26-50% make up the Yellow Neutral Zone, and the bottom half of each investment report is considered the Red Unfavored 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 (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.
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.
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.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.