Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Global Head of Trader Strategy
Technical Analyst, Saxo Bank
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.