Bullish Signal for REIT Has Never Been Wrong

Simon Property Group stock could bounce off the 50-day moving average

The shares of Simon Property Group Inc (NYSE:SPG) just brushed off a price-target hike from Truist Securities to $130 from $125, as they cool from a rally to their highest level since April. The security added 12.1% in the last nine months, though, and may soon extend that lead now that it is trading near a trendline with historically bullish implications.

Specifically, SPG is within one standard deviation of its 50-day moving average. Per Schaeffer’s Senior Quantitative Analyst Rocky White’s latest study, the security saw no fewer than five similar signals over the last three years, and was higher one month later each time, averaging a 13.1% gain. A comparable move from its current perch of $120.62 would have the security trading at a fresh 11-month peak of $136.41.

Options are a solid route for those looking to weigh in on Simon Property Group stock’s next moves, as they are attractively priced right now. This is per the security’s Schaeffer’s Volatility Index (SVI) of 23%, which is at the bottom off its 12-month range.