Chart of the Week: Spotify
Good morning everyone. Happy Wednesday. We’re back with the chart of the week. We’ll talk about Spotify here today; symbol SPOT.
So you can see here that the stock has been in a couple really nice uptrends over here. Higher highs, higher lows, you can see that nice channel over there. And then it really shot higher and made a nice cup and handle pattern here. And then hit an overbought reading at the start of December and has corrected a little bit during that month of December.
What I find interesting right now is that the stock has broken out of the channel. On Friday it did that. And on Monday, it followed through with a slightly higher high and higher low.
I think that this stock has got some room to move. Probably going like this back to/above all-time highs above the $505 level.
Relative strength has pulled back from overbought readings. You can see money flow has gone a little bit negative over here. But it’s basically puling off the overbought reading from November and December.
MACD looks about ready to cross over for a buy signal here. The cloud is green, which is bullish.
So nothing really wrong with this chart here right now right now. I think that Spotify has probably got some good run into it. It’s $469 right now. It could probably make a run up to $600 over the next several weeks.
So take a look at SPOT. Thanks for watching everyone.
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