We looked at the charts and indicators of Spotify S.A. (SPOT) just a few weeks ago on June 23 and wrote that "SPOT looks extended when compared to the 200-day moving average line. This might mean prices dip to around $240 before renewed buying enters. Traders could use this dip, if it happens, to go long or add to longs. Risk a close below $220 now. The $320 area (a double from the top end of the $110-$160 consolidation area mentioned above) is the price target."
Traders got a dip to $240 the next day so let's check out SPOT again.
In the daily bar chart of SPOT, below, we can see that the shares have remained strong. SPOT is above the rising 50-day moving average line and above the rising 200-day moving average line. The daily trading volume has been expanding since February and tells us that more investors are involved and that is supportive of further gains.
The daily On-Balance-Volume (OBV) line has moved up strongly with the price action and tells us that buyers of SPOT have been more aggressive with heavier volume being traded on days when prices close higher. The Moving Average Convergence Divergence (MACD) oscillator has narrowed in recent days but is still pointed up in a bullish pattern.