NYSE:SPOT Shows Potential for a Breakout.

Our stock screener has detected a potential breakout setup on SPOTIFY TECHNOLOGY SA (NYSE:SPOT). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:SPOT.

Technical analysis of NYSE:SPOT

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

We assign a technical rating of 10 out of 10 to SPOT. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SPOT is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that SPOT is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by SPOT over the past year are nicely spread over this period.
• SPOT is one of the better performing stocks in the Entertainment industry, it outperforms 93% of 76 stocks in the same industry.
• SPOT is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SPOT is performing more or less in line with the market.
• SPOT is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Our latest full technical report of SPOT contains the most current technical analsysis.

How does the Setup look for NYSE:SPOT

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:SPOT scores a 9 out of 10:

Besides having an excellent technical rating, SPOT also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 156.78, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:SPOT

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:SPOT and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.