Red day on Thursday for Energy Select Sector SPDR Fund fund after losing 2.11%
(Updated on Jun 30, 2022)

The Energy Select Sector SPDR Fund fund price fell by -2.11% on the last day (Thursday, 30th Jun 2022) from $73.05 to $71.51. and has now fallen 3 days in a row. During the day the fund fluctuated 3.52% from a day low at $70.87 to a day high of $73.37. The price has fallen in 6 of the last 10 days and is down by -13.19% for this period. Volume has increased on the last day by 2 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, 38 million shares were bought and sold for approximately $2.70 billion.

The fund lies in the lower part of a very wide and weak rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $70.93 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift. Given the current short-term trend, the fund is expected to rise 3.72% during the next 3 months and, with a 90% probability hold a price between $73.57 and $96.55 at the end of this 3-month period.

Signals & Forecast

A buy signal was issued from a pivot bottom point on Thursday, June 23, 2022, and so far it has risen 1.20%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Energy Select Sector SPDR Fund fund 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 $72.79 and $82.07. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the fund should be followed more closely.

Support, Risk & Stop-loss

Energy Select Sector SPDR Fund finds support from accumulated volume at $70.66 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This fund may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this fund is considered to be "high risk". During the last day, the fund moved $2.49 between high and low, or 3.52%. For the last week, the fund has had a daily average volatility of 3.64%.

Energy Select Sector SPDR Fund is oversold on RSI14 (23). Some funds may drop long and hard while being oversold on RSI before turning, which increases the general risk.

Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.

Trading Expectations For The Upcoming Trading Day Of Friday 1st

For the upcoming trading day on Friday 1st we expect Energy Select Sector SPDR Fund to open at $71.92, and during day (based on 14 day Average True Range), to move between $68.26 and $74.76, which gives a possible trading interval of +/-$3.25 (+/-4.54%) up or down from last closing price. If Energy Select Sector SPDR Fund takes out the full calculated possible swing range there will be an estimated 9.08% move between the lowest and the highest trading price during the day.

Since the stock is closer to the support from accumulated volume at $70.66 (1.19%) than the resistance at $73.49 (2.77%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..

Is Energy Select Sector SPDR Fund fund A Buy?

The Energy Select Sector SPDR Fund fund holds several negative signals and despite the positive trend, we believe Energy Select Sector SPDR Fund will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this fund.

Current score: -3.210

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