Pages

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.

Check out my Essential Reading List here (I may receive some compensation if you purchase anything on Amazon following my links).

TK



Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my About page for a full disclaimer.

No comments:

Post a Comment