SPY ETF upgraded from Buy Candidate to Strong Buy Candidate after Tuesday trading session.

StockInvest.us, 1 month ago

StockInvest.us

The SPY ETF price gained 0.422% on the last trading day (Tuesday, 26th Dec 2023), rising from $473.65 to $475.65. It has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the ETF fluctuated 0.546% from a day low at $473.99 to a day high of $476.58. The price has risen in 8 of the last 10 days and is up by 2.96% over the past 2 weeks. Volume fell on the last day by -5 million shares and in total, 55 million shares were bought and sold for approximately $25.97 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

The ETF lies in the upper part of a strong 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 $482.09 will firstly indicate a stronger rate of rising.Given the current short-term trend, the ETF is expected to rise 12.76% during the next 3 months and, with a 90% probability hold a price between $502.75 and $543.59 at the end of this 3-month period.

SPY

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 $472.34 and $456.63. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, October 27, 2023, and so far it has risen 15.82%. 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 fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The ETF should be watched closely.

SPY finds support from accumulated volume at $469.33 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $2.59 between high and low, or 0.546%. For the last week the ETF has had daily average volatility of 0.89%.

SPY holds several positive signals and is within a strong 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.