SPOT slides to lowest close since June 19th
Spotify Technology S.A. (SPOT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, SPOT ended Wednesday at 234.85 losing $3.06 (-1.29%) on high volume, underperforming the S&P 500 (-0.46%). Today's close at 234.85 marks the lowest recorded closing price since June 19th. Trading up to $11.30 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on August 25th, SPOT gained 3.57% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SPOT as at Sep 16, 2020):
Wednesday's trading range has been $20.41 (8.8%), that's far above the last trading month's daily average range of $12.88. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SPOT.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
After trading as low as 220.70 during the day, Spotify Technology found support at the 100-day moving average at 226.99. Prices are trading close to the key technical resistance level at 241.27 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Spotify Technology. Out of 5 times, SPOT closed higher 80.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.00% with an average market move of 1.14%.