In our March 24 review of the charts and indicators of Spotify Technology (SPOT) we wrote that, "SPOT has made a significant correction and prices are back to the area where SPOT based in 2019. The weekly bullish engulfing pattern suggests that prices have made a low but a new base pattern needs to play out in the weeks and months ahead. Be patient and let other traders and investors do the base building."
Some fundamental analysts now seem to have a more positive view towards SPOT following their Investor Day.
Let's check out the charts again.
In the daily bar chart of SPOT, below, we can see that the shares worked lower into early May. From this May low prices have firmed up to test the declining 50-day moving average line.
The daily On-Balance-Volume (OBV) line made a low in late April and has moved sideways into June. The Moving Average Convergence Divergence (MACD) oscillator has made a higher low in May than in March even though prices made a low -- this is a bullish divergence. The oscillator is now closer to crossing the zero line and a new outright buy signal.