Indications Suggest NYSE:SPOT Could Be on the Verge of 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.

Insights from Technical Analysis

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 10 out of 10 to SPOT. Both in the recent history as in the last year, SPOT has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• 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 part of the Entertainment industry. There are 72 other stocks in this industry. SPOT outperforms 94% of them.
• SPOT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month SPOT has a been trading in the 362.31 - 389.48 range, which is quite wide. It is currently trading near the high of this range.

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

How does the Setup look for NYSE:SPOT

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:SPOT currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, SPOT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 384.37. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 384.35, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:SPOT?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.