SIA Chartsā relative strength rankings help investors identify opportunities in stocks that are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company or sector growth. Today we will review one of the top performers of the SIA S&P 100 Index Report, Simon Property Group Inc. (SPG), the largest owner of shopping malls in the USA. We last provided an update on SPG in the November 17th and December 6th, 2023 editions of the Daily Stock Report. At that time, SPG had been gaining in relative strength and returned to the Green Favored Zone of the SIA S&P 100 Index Report and was in breakout mode through the $120 level. In the nine months since, the shares have climbed 36.37%, while the S&P 100 Index is up 26.58% over the same timeframe. SPG has also continued to rise in the relative strength rankings, having moved up another 9 spots in the last quarter to 9th position. After breaking out in November 2023, the shares set their sights on the top-line resistance at $150 and approached it quickly, surging in early 2024 and smacking through this solid resistance in March. After consolidating through most of the summer at the $150 mark, it now appears that SPG is aiming for higher levels on the back of excellent relative strength. Letās first check out the weekly chart to see what insights we can glean from summer trading activity. Here we find a nice trend for all of 2024 with solid volume, albeit waning throughout the last summer as practitioners were busy charging their batteries for what will no doubt be a busy fall. For active traders, the latest candle is what we call a shooting star. A shooting star candlestick is a bearish reversal pattern that appears after an uptrend, characterized by a small body at the lower end and a long upper shadow. It suggests that buying pressure is weakening, signaling that there might be short-term distribution. This would provide yet another opportunity for entry into this technical leader on days when the stock pulls back into the $140 level. Long-term support is now very strong at the previous resistance at the $120 level.
Turning next to the Point and Figure chart, we can better understand how to navigate the SPG investment as we move into fall. Point and figure charts excel in capturing price movements without the noise of time or volume, focusing solely on price changes. This method highlights significant trends and reversals, making it a powerful tool for identifying key support and resistance levels. In the attached chart, we can see the latest double-top breakout at $154.97 and the prior spread double tops at $146.03 and $143.17. Long-term support is clear and will be very strong at the 2023 spread triple top at $119.80 or $120 as the whole number. Based on a vertical count, we can establish new resistance at $174.52 and $200.47, which aligns perfectly with typically strong 'whole number' resistance. With a perfect SMAX score of 10 out of 10 (a near-term indicator comparing an asset against various asset classes), Simon Property Group is showing strong short-term performance across all asset classes, even after recent market fluctuations and expanding volatility.
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.
