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SPY ETF upgraded from Sell Candidate to Hold/Accumulate after Tuesday trading session.

StockInvest.us, 2 months ago

StockInvest.us

The SPY ETF price gained 2.70% on the last trading day (Tuesday, 19th Jul 2022), rising from $381.95 to $392.27. During the day the ETF fluctuated 1.94% from a day low at $385.39 to a day high of $392.87. The price has fallen in 6 of the last 10 days, but is still up by 2.7% 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, 15 million more shares were traded than the day before. In total, 78 million shares were bought and sold for approximately $30.74 billion.

The ETF lies the upper part of a wide and falling 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 $396.97 will firstly indicate a slower falling rate, but may be the first sign of a trend shift.Given the current short-term trend, the ETF is expected to fall -10.73% during the next 3 months and, with a 90% probability hold a price between $312.63 and $354.38 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.

SPY

The SPY ETF holds buy signals from both short and long-term moving averages giving a positive forecast for the stock, but the ETF has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $383.02 and $388.74. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, June 17, 2022, and so far it has risen 7.22%. 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.

SPY finds support from accumulated volume at $389.80 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 $7.48 between high and low, or 1.94%. For the last week the ETF has had a daily average volatility of 1.90%.

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.We have upgraded our analysis conclusion for this ETF since the last evaluation from a Sell to a Hold/Accumulate candidate.

Check full SPY forecast and analysis here.