Shares of Spotify Technology (SPOT) gapped lower Tuesday morning on the heels of a revenue miss. Let's review the charts and indicators.
In this daily bar chart of SPOT, below, I can see that today is the third day of declines. Prices have gapped below the rising 50-day moving average line and the rising 200-day moving average line intersects down around $118.
The On-Balance-Volume (OBV) line shows strength from November but some recent weakness. The Moving Average Convergence Divergence (MACD) oscillator is weak.
In this weekly Japanese candlestick chart of SPOT, below, I can see a top reversal pattern on the candles in the past three weeks. The weekly OBV line is turning down and the MACD oscillator is narrowing towards a take profit sell signal.
In this daily Point and Figure chart of SPOT, below, I can see the recent steep decline. The software suggests we could see a deeper decline to the $101 area.
In this weekly Point and Figure chart of SPOT, below, I can see a potential downside price target in the $97 area.
Bottom line strategy: The price of SPOT has already tumbled for three days so this is probably not the time nor the place to get bearish. The Point and Figure charts suggest further declines but I am not convinced.
