Tuesday, December 20, 2016

*UPDATED 12:30EST* Commentary for 12-20-2016 $SPG $RL

This just in:

New Buy signal for $SPG (Simon Property Group)

New Sell Signal for $RL (Ralph Lauren)

More to come on the afternoon with price targets and some technical analysis for each signal.

****Updated on 12:30 EST****

Now that I have some time, here's the technical analysis on $SPG and $RL:

$SPG: Hasn't really changed since the opening bell, currently trades at $182.46

Technically speaking, I kinda scratch my head on this one, because it does not look poised for an upside breakout. It DOES look like the stock hit support at $174.91 and this area will probably be a good stop loss for a Long position (risk: 4%).
As for price target - once the stock crosses $187.3 its next resistance seems to be at $194 (reward: 6.3%)
You're looking at a risk:reward of approximately 1.5. Not great. Maybe wait for a little pullback and near $180 you'll get a better ratio.
I actually would not enter at this point. But I am only here to post what the algorithm tells me. As usual, you should do your own due diligence before entering a position!

$RL: Also little changed, currently trading at $93.25

This stock has seen major breakout to the negative in the last six trading sessions, having fallen from $108 to almost $93, that's about 13.8% drop in 6 days. My algorithm suggests if you had a position and had not yet sold it, now would be a good time to sell. Technically speaking, the stock did break a major support line on the Daily chart, so it could get worse. I would enter a Short position here with a stop loss at $96.25 (risk: 3.2%) for a price target of $84 (reward: 10%) to test May support.
With a risk:reward ratio of 3.12 this is definitely worth a shot.

I may enter a position with options in the next 72 hours.

To see general results of the algorithm click here.

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