The iShares Core S&P 500 UCITS ETF edged north yesterday, hit a fresh record at 415.50, but then, it pulled back to finish the session in the red. Overall, the ETF is trading above the tentative upside support line drawn from the low of March 4th, as well as above all three of our moving averages on the 4-hour chart, and thus, we would consider the near-term outlook to be positive.
The current retreat could continue for a while more, perhaps for the price to test the 408.60 barrier or the 405.00 zone. However, as long as it stays above the aforementioned upside line, we would consider this downside move as a corrective phase before the next leg north. The bulls may take charge from near those zones and drive the battle up for another test at 415.50. If they are strong enough to overcome it this time around, they will place the ETF into uncharted territory and they may target the next psychological area, at around 420.00.
Shifting attention to our short-term oscillators, we see that the RSI exited its above-70 zone and is now pointing down, while the MACD, although positive, lies below its trigger line, pointing south as well. Both indicators detect slowing upside speed and support our view that some further retreat may be in the works before the next leg north.
Now, in order to start examining a short-term bearish reversal, we would like to see a dip below 399.50, marked by the inside swing highs of March 16th and 17th. This would also take the ETF below the aforementioned upside line and may initially allow declines towards the 394.40 area, marked by the lows of March 29th and 30th. Another break, below 394.40, could carry more bearish implications, perhaps paving the way towards the low of March 25th, at 385.30.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
Trading ETFs involves significant risk of loss and may not be suitable for all investors. Investments returns may fluctuate and are subject to market volatility. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.