Spotify Price Levels to Watch as Stock Pops on Subscriber Growth, Outlook | Global News Avenue

Spotify (point) stock price rises Extended transaction The streaming giant climbed to the top of Wall Street’s charts on Tuesday User growth in the third quarter and posted a better-than-expected earnings outlook.

Shares of the Sweden-based company have more than doubled since the start of the year through Tuesday’s close, with investors pleased with its ability to accumulate holdings. subscriber and manage costs while expanding its footprint from music streaming to such podcast and audiobooks.

The stock rose nearly 7% to around $448 in after-hours trading Tuesday.

Below, we take a closer look at Spotify’s charts and usage technical analysis Identify important post-earnings price levels to watch.

Uptrend remains stable

After a successful retest of the top trendline ascending triangleSpotify shares continue to move higher.

What’s important is that it’s significant trading volume There has been some entry into the stock in recent trading days, which suggests folder Reposition ahead of company quarterly results.

It’s worth pointing out that even before today’s after-hours pop, Relative Strength Index (RSI) Flash reading is above 70 threshold. While this suggests bullish price momentum, it also suggests overbought Stock conditions could lead to a near-term pullback.

Let’s predict the bullish trend based on charts price target and identifies several important trading levels Spotify stock could encounter support period decline.

bullish price target

Investors can predict bullish price targets by using bar charts, a charting tool that uses previous price action to predict future movements. To apply this technique, we extract the trend It moved higher from January to April and repositioned itself from the top trendline of the ascending triangle, which is expected to target around $525.

We use this previous trend because it started after a retest of the previous ascending triangle on the chart, much like how the stock’s current move higher began.

Important support levels to monitor

Following the initial pullback, investors should watch the stock’s reaction to the $389 level. This location may provide support in several smaller locations peak Formed on the chart between late September and late October.

A close below this level would open the door to a drop to around $350, an area on the chart that could attract buying interest near the top. merge The stock breaks out of the range following the ascending triangle.

Finally, a deeper pull back A retracement of lower support near $320 could be seen, which is an area on the chart that investors may seek entry point Near the upper trendline of the ascending triangle, this trendline may reverse from the previous trendline resist to future support.

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As of the date of this writing, the author did not own any of the securities mentioned.