SPOT slips to lowest close since November 22, 2019
Spotify Technology S.A. (SPOT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SPOT ended the week -8.77% lower at 141.00 after losing $0.50 (-0.35%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 141.00 marks the lowest recorded closing price since November 22, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 141.30, the market confirmed its breakout through the previous session low after trading up to $0.45 below it intraday.
Daily Candlestick Chart (SPOT as at Feb 14, 2020):
Friday's trading range has been $6.04 (4.11%), that's above the last trading month's daily average range of $4.93. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPOT.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical resistance level at 142.44 (R1). The stock ran into sellers again today around 146.89 for the third trading day in a row after having found sellers at 146.89 in the prior session and at 147.44 two days ago. The last time this happened on Monday, SPOT lost -1.73% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 140.00, downside momentum might accelerate should Spotify Technology break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for Spotify Technology. Out of 31 times, SPOT closed lower 54.84% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.29% with an average market move of 0.14%.