SPY ETF upgraded to Buy Candidate.

StockInvest.us, 1 month ago

StockInvest.us

The SPY ETF price fell by -0.117% on the last day (Friday, 26th Jan 2024) from $488.03 to $487.46. During the last trading day the ETF fluctuated 0.530% from a day low at $486.54 to a day high of $489.12. The price has risen in 7 of the last 10 days and is up by 2.33% over the past 2 weeks. Volume fell on the last day along with the ETF, which is actually a good sign as volume should follow the ETF. On the last day, the trading volume fell by -9 million shares and in total, 62 million shares were bought and sold for approximately $30.29 billion.

The ETF lies in the upper part of a narrow and 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 $490.53 will firstly indicate a stronger rate of rising.Given the current short-term trend, the ETF is expected to rise 13.70% during the next 3 months and, with a 90% probability hold a price between $534.12 and $557.72 at the end of this 3-month period.

SPY

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 $484.04 and $473.33. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, January 25, 2024, and so far it has fallen -0.117%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

SPY finds support from accumulated volume at $472.00 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 $2.58 between high and low, or 0.530%. For the last week the ETF has had daily average volatility of 0.579%.

The SPY ETF is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some ETFS may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the ETF manages to break the trend before that occurs.

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.