SPY ETF upgraded to Buy Candidate.StockInvest.us, 2 weeks ago
The SPY ETF price gained 1.07% on the last trading day (Monday, 12th Sep 2022), rising from $406.60 to $410.97. It has now gained 5 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 0.80% from a day low at $408.46 to a day high of $411.73. The price has been going up and down for this period, and there has been a 1.4% gain for the last 2 weeks. Volume fell on the last day by -7 million shares and in total, 69 million shares were bought and sold for approximately $28.46 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 middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled.Given the current short-term trend, the ETF is expected to rise 10.53% during the next 3 months and, with a 90% probability hold a price between $434.91 and $488.46 at the end of this 3-month period.
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 $399.31 and $409.96. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, September 06, 2022, and so far it has risen 5.17%. Further rise is indicated until a new top pivot has been found. 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
On the downside, the ETF finds support just below today's level from accumulated volume at $379.20 and $375.00.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 $379.20. 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 $3.27 between high and low, or 0.80%. For the last week, the ETF has had daily average volatility of 1.48%.
Several short-term signals, along with a general good trend, 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.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.