SPY ETF downgraded from Buy Candidate to Hold/Accumulate after Friday trading session.

StockInvest.us, 1 month ago

StockInvest.us

The SPY ETF price fell by -0.0025% on the last day (Friday, 2nd Dec 2022) from $407.13 to $407.12. During the last trading day the ETF fluctuated 1.42% from a day low at $402.14 to a day high of $407.86. The price has been going up and down for this period, and there has been a 3.88% gain for the last 2 weeks. Volume has increased on the last day by 6 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 65 million shares were bought and sold for approximately $26.29 billion.

The ETF lies in the upper part of a wide and weak rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $407.39 will firstly indicate a stronger rate of rising.Given the current short-term trend, the ETF is expected to rise 4.05% during the next 3 months and, with a 90% probability hold a price between $380.59 and $423.89 at the end of this 3-month period.

SPY

There are mixed signals in the ETF today. A sell signal was issued from a pivot top point on Thursday, December 01, 2022, and so far it has fallen -0.0025%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the ETF should be followed more closely. The SPY ETF holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $402.05 and $386.51. A breakdown below any of these levels will issue sell signals.

On the downside, the ETF finds support just below today's level from accumulated volume at $373.20 and $362.79.There is a natural risk involved when a ETF is testing a support level, since if this is broken, the ETF then may fall to the next support level. In this case, SPY finds support just below today's level at $373.20. If this is broken, then the next support from accumulated volume will be at $362.79 and $357.18.

This ETF has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the ETF moved $5.72 between high and low, or 1.42%. For the last week, the ETF has had daily average volatility of 1.63%.

SPY holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Hold/Accumulate candidate.

Check full SPY forecast and analysis here.