SPY ETF upgraded from Buy Candidate to Strong Buy Candidate after Friday trading session.
StockInvest.us, 10 months ago
The SPY ETF price gained 1.45% on the last trading day (Friday, 2nd Jun 2023), rising from $421.82 to $427.92. During the last trading day the ETF fluctuated 1.13% from a day low at $423.95 to a day high of $428.74. The price has risen in 6 of the last 10 days and is up by 2.07% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 3 million more shares were traded than the day before. In total, 84 million shares were bought and sold for approximately $36.08 billion.
The ETF lies in the upper part of a 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 $431.45 will firstly indicate a stronger rate of rising.Given the current short-term trend, the ETF is expected to rise 6.75% during the next 3 months and, with a 90% probability hold a price between $437.70 and $460.58 at the end of this 3-month period.
Mostly positive signals in the chart today. 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 $419.08 and $413.87. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, March 13, 2023, and so far it has risen 11.04%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
On the downside, the ETF finds support just below today's level from accumulated volume at $389.28 and $385.91.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 $389.28. If this is broken, then the next support from accumulated volume will be at $385.91 and $385.36.
In general the ETF tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the ETF moved $4.79 between high and low, or 1.13%. For the last week the ETF has had daily average volatility of 1.11%.
SPY holds several positive signals and is within a weak rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.We have upgraded our analysis conclusion for this ETF since the last evaluation from a Buy to a Strong Buy candidate.
Check full SPY forecast and analysis here.