Spotify Technology S.A (SPOT) has broken above the highs of 2019 and could climb further in the weeks ahead. Let's check out the charts of the digital music, podcast, and video-streaming service.
In the daily bar chart of SPOT, below, we can see a bullish picture. Prices are making new highs for the move up from the March nadir. Prices are above the rising 50-day moving average line and the bottoming 200-day moving average line.
The daily trading volume histogram just below the price chart looks like it has been increasing since the beginning of the year. The daily On-Balance-Volume (OBV) line has been rising since October and tells us that buyers of SPOT have been more aggressive. The OBV line is making a new high for the move up and confirms and supports the price action.
The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line last month for a buy signal, which is still in effect.
In the weekly bar chart of SPOT, below, we can see the upside breakout of the highs of July. Prices are above the bottoming/rising 40-week moving average line.
The weekly OBV line has been rising since March and the MACD oscillator has crossed the zero line this month for a longer-term buy signal.
In this Point and Figure chart of SPOT, below, we used daily price data. Here the chart shows that an upside price target has been reached but also that prices have broken out to a new high for the move up.
In the second Point and Figure chart of SPOT, below, we used weekly price data. Here the chart is projecting a big upside price target in the $257 area.
Bottom-line strategy: Aggressive traders could go long SPOT on any near-term dip toward $160, risking to $145. The $190 area is our first price target. The next possible targets are $200 and then the $257 area.
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