Spotify Technology S.A. stocks have remained in a strong trend, but technical indicators suggest a potential for a short-term pullback.
TD Sequential Signals a Sell
Market analyst ali_charts shared that Spotify stocks might be at the market top because the TD Sequential indicator showed multiple sell signals. The three-day chart indicates a '9' count, suggesting possible trend exhaustion and price adjustment.
Key Support and Resistance Levels
Resistance at $646.98 has held so far, and buyers are actively entering the market at this level. A breakout above $650 could extend the rally to around $680. However, if support at the $620-$630 range fails to hold, prices may drop to the $600 area.
RSI and MACD Suggest Declining Momentum
The Relative Strength Index (RSI) is at 70.57, close to the overbought zone. Falling below 70 could increase downside pressure. The MACD indicator is turning bearish as the histogram begins to turn red, indicating possible downside risks.
Spotify's stock remains in an upward trend, although a short-term pullback is possible. A confirmed MACD crossover and RSI drop below 70 may signal a temporary correction and test of support levels.
