We reviewed on June 9 the charts of Spotify (SPOT) and recommended that "Aggressive traders could go long SPOT for a trade. Nimble on the long side at current levels risking to $104. Our price targets are $141 and then $178."
Traders would have been stopped out unfortunately as prices retreated instead of rallying.
Let's check on the charts again.
In this daily bar chart of SPOT, below, we can see that prices held the $90 level in May and again in late June or early July. Prices are trading right on the 50-day moving average line, so "this time could be the charm" and we could have a close above the average line.
The trading volume appears to be more active over the past nine weeks or so and the On-Balance-Volume (OBV) line has been steady. The Moving Average Convergence Divergence (MACD) oscillator made a higher low in May when prices made a lower low. Now the MACD oscillator is not far below the zero-line.
In this weekly Japanese candlestick chart of SPOT, below, we see some positive clues. Prices are trading below the declining 40-week moving average line. The weekly OBV line shows a low in late April that has not been retested. The MACD oscillator has curved upward to a cover-shorts buy signal.
In this daily Point and Figure chart of SPOT, below, we can see a downside price target of $77 but a trade at $110 is likely to turn the chart positive.
In this weekly Point and Figure chart of SPOT, below, we see a potential downside price target in the $81 area. A trade at $110 would improve the chart.
Bottom line strategy: Traders who are not discouraged by our last buy recommendation could go long SPOT at current levels risking to $89.
