Traders are pushing up shares of Spotify Technology (SPOT) on the heels of a company announcement that the digital music and video firm is cutting 6% of its staff. Let's check out the charts and indicators.
In the daily bar chart of SPOT, below, I can see that the shares have rallied to the declining 200-day moving average line in the past few weeks. SPOT is trading above the now rising 50-day moving average line.
The daily On-Balance-Volume (OBV) line shows some improvement from November. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of SPOT, below, I can see some recent improvement. Prices are testing the 40-week moving average line.
The weekly OBV line has been in a long decline but shows some improvement from December. The MACD oscillator has been improving from May but still remains below the zero line.
In this daily Point and Figure chart of SPOT, below, I can see that prices reached an upside price target in the $96 area.
In this weekly Point and Figure chart of SPOT, below, the software is projecting a price target in the $143 area.
Bottom-line strategy: The charts of SPOT are mostly positive now but I am not looking to be a buyer just yet. I feel I need more constructive signs before recommending purchase. Stay tuned.
