We last reviewed Simon Property Group Inc. (SPG) at the end of September back in 2016, and way back then I wrote, "(SPG) which is currently trading at about $209 a share -- might have one more decline towards $205, which is roughly the rising 200-day moving average line's current value. However, I anticipate another upside attempt after that."
Things did not play out according to plan as SPG broke below that 200-day line and continued to decline. The decline brought prices down to near $145 recently. Will this new price low become a floor? Let's review some updated charts.
In this daily bar chart of SPG, below, we can see that prices just closed above the declining 50-day simple moving average line. The still bearish 200-day line intersects just below $160, which is not far away now. The daily On-Balance-Volume (OBV) line did not make a new low when prices made a new low giving us a bullish divergence. The trend-following Moving Average Convergence Divergence (MACD) oscillator made a higher low recently and turned up to generate another cover shorts buy signal.
In this weekly bar chart of SPG, below, we can see that prices peaked back in July of 2016. SPG is still below the declining 40-week moving average line but a rall above $160 would break the line. The weekly OBV line looks like it is trying to stabilize the past three months. The weekly MAC oscillator is below the zero line but narrowing towards a possible cover shorts buy signal in the weeks ahead.
In this Point and Figure chart of SPG, below, we can see twin lows at $146. A rally to $160 will start to improve this chart.
Bottom line: SPG may not be completely out of the weeds, but we do have a number of indicators that have improved. Further strength above $160 will further improve the picture. Traders could go long on a close above $160 risking below $145.