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Stronger technical forecast for SPY ETF price after Tuesday trading.

StockInvest.us, 2 months ago

StockInvest.us

The SPY ETF price fell by -0.88% on the last day (Tuesday, 12th Jul 2022) from $384.23 to $380.83. and has now fallen 4 days in a row. During the day the ETF fluctuated 1.89% from a day low at $378.99 to a day high of $386.16. The price has fallen in 6 of the last 10 days and is down by -2% for this period. Volume has increased on the last day by 4 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 62 million shares were bought and sold for approximately $23.66 billion.

The ETF lies in the middle of a wide and falling trend in the short term and further fall within the trend is signaled.Given the current short-term trend, the ETF is expected to fall -12.74% during the next 3 months and, with a 90% probability hold a price between $306.71 and $343.55 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

A buy signal was issued from a pivot bottom point on Friday, June 17, 2022, and so far it has risen 4.09%. 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). Some negative signals were issued as well, and these may have some influence on the near short-term development. The SPY ETF holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $384.17 and $390.66. A break-up above any of these levels will issue buy signals. Volume rose on falling prices yesterday. This may be an early warning and the ETF should be followed more closely.

SPY finds support from accumulated volume at $379.20 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 $7.17 between high and low, or 1.89%. For the last week the ETF has had a daily average volatility of 1.49%.

SPY holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation 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.