Spotify Technology (SPOT) is soaring toward the stratosphere Thursday on buying probably linked to news that Kim Kardashian has signed an exclusive deal with the digital radio company for a podcast. It was reported that the well-known celebrity will discuss national topics of interest, including the Innocence Project, of which she has been a vocal supporter.
Technically, the stock has broken out of a consolidation pattern and that warrants a fresh look at the charts and indicators.
In the daily bar chart of SPOT, below, we can see prices broke out on the upside in May from a long sideways consolidation pattern. The shares made a much tighter consolidation pattern from late May into June before Thursday's upside breakout.
SPOT is above the rising 50-day moving average line and the rising 200-day moving average line. The 50-day line crossed above the 200-day line in late May for what is commonly called a golden cross. This is a mechanical buy signal that typically is late or well off the bottom but it can be successful in long-trending markets.
The On-Balance-Volume (OBV) line shows a rise from early March telling us that buyers of SPOT have been more aggressive leading up to this news. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside today for a new buy signal.
In this second Point and Figure chart of SPOT, below, we used weekly close-only price data to construct the charts. A longer-term potential price target of $323 is being projected.