SPOTIFY TECHNOLOGY SA (NYSE:SPOT) – A Strong Technical Setup for Breakout Traders

SPOTIFY TECHNOLOGY SA (NYSE:SPOT) has been identified as a standout candidate in our technical breakout screen. The stock exhibits both strong technical health and a high-quality setup pattern, making it an interesting opportunity for traders focused on momentum and consolidation breakouts.

Technical Strength

SPOT currently holds a perfect Technical Rating of 10, reflecting its strong trend and relative outperformance. Key factors contributing to this rating include:

• Positive Trends: Both short-term and long-term trends are upward, reinforcing the stock’s bullish momentum.
• Market Leadership: SPOT outperforms 96% of all stocks over the past year, with consistent gains spread across the period.
• Industry Strength: Within the Entertainment sector, SPOT ranks in the top 8%, beating 92% of its peers.
• New Highs: The stock is trading near its 52-week high, signaling confidence among buyers.

Moving averages further confirm the bullish structure, with the 20-day, 50-day, 100-day, and 200-day SMAs all trending higher.

Setup Quality

Beyond its strong technicals, SPOT presents a Setup Rating of 9, indicating a well-defined consolidation pattern. Key observations include:

• Tight Trading Range: Prices have consolidated between $602 and $678.57 over the past month, reducing volatility.
• Support and Resistance: A clear resistance zone sits just above the current price at $671.08-$672.01, while support is found near $655.44.
• Recent Signal: A Pocket Pivot—a bullish volume-driven pattern—was recently detected, adding further confirmation.

A breakout above $672.02 could serve as an entry point, with a stop-loss placed below $647.47 to manage risk.

For a deeper dive into SPOT’s technicals, review the full technical report.

Our Technical Breakout Setups screener updates daily with new potential opportunities.

Disclaimer

This is not investment advice. Always conduct your own analysis and consider risk management before trading.