Technical Pulse – SPDR S&P 500 ETF Trust April 29, 2021 182

SPDR S&P 500 Trust (US: SPY) has been trending up for a year and its long term technicals show further upside. We expect a slight correction this week before resumption of the rally:   

 

  1. Price is trending above all Ichimoku indicators as well as both the primary and secondary uptrend lines. This signals a continuing uptrend.
  2. The resistance level has been tested four times in recent price action, indicating a weakening resistance. However, a potential short term reversal is likely due to the appearance of Doji candles and lower volumes below the 10-period moving average the past 4 days signalling slowing price momentum.
  3. We expect prices to rise to the 161.8% and 200.00% expansion levels of US$371.94-398.01.
  4. We will likely see a correction to the 23.8% and 38.2% Fibonacci retracement levels before seeing a rebound to the target prices.

 

*Expected timeline of the trade is 10 weeks from the date of report issuance.

 

CHART LEGENDS

 

Ichimoku Kinko Hyo

Red dotted line: 9 period Tenkan-Sen

Blue dotted line: 26 period Kijun-Sen

Green Line B: 52 period Senkou Span B

Pink Line A: 26 period Senkou Span A

Black line: 26 period Chikou-Span. (Lagging line)

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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