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SPY ETF upgraded to Buy Candidate.

StockInvest.us, 1 month ago


The SPY ETF price gained 2.10% on the last trading day (Wednesday, 10th Aug 2022), rising from $411.35 to $419.99. During the last trading day the ETF fluctuated 0.82% from a day low at $416.72 to a day high of $420.14. The price has fallen in 6 of the last 10 days, but is still up by 4.73% 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, 23 million more shares were traded than the day before. In total, 68 million shares were bought and sold for approximately $28.67 billion.

The ETFis at the upper part of a wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $421.11 will give a strong buy signal and a trend shift could be expected.Given the current horizontal trend, you can expect SPY ETF with a 90% probability to be traded between $373.06 and $426.07 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and ETFS seldom manage to go directly from the bottom of a trend up to the top. ETFS turning up in the middle of a horizontal trend are therefore considered to be potential runners.


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 $413.50 and $393.55. 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 14.80%. 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 $392.75 and $375.00.There is 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 $392.75. If this is broken, then the next support from accumulated volume will be at $375.00 and $366.65.

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 $3.42 between high and low, or 0.82%. For the last week, the ETF has had a daily average volatility of 0.92%.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for SPY ETF to perform well in the short-term period.We have upgraded our analysis conclusion for this ETF since the last evaluation from a Hold/Accumulate to a Buy candidate.

Check full SPY forecast and analysis here.