Technical Update - Will better than expected earnings push Spotify share price bullish out of sideways range ?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Spotify has been range bound between 89 and 119 for a couple of moths by now. The company has released earnings this morning and the share is trading pre-market at $111 up 7%. That is not enough to break bullish out the range. But if it does close above an uptrend will be established with short-term potential to 159.50.
A close below 89 and Spotify will be in un-charted territory which could push the share price to around 70
Bigger picture – medium term.
Spotify range bound trading is fluctuating around its 2018 low around 104. There is divergence RSI (price made a new low but RSI moved higher) indicating an exhaustion of the down trend followed by a reversal. Look out for RSI breaking out of its rising channel. The break-out direction will be a good guide for medium term trend. Historically strong resistance around 159-161.
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