Spot - Spotting That Reversal

Spotify Technology S.A.NYSE

Description

⋅ Sep 16, 2020 5:03 PM

Spot recently slid 20% over the last week. Currently, the price is at an opportunistic level for a trade.

Stochastic RSI has bottomed. However, the signal line has not risen above 20, which would indicate strong momentum.

Currently, the momentum on the daily chart is indicated on the price action of the daily candle by the long wick which hit a low of 220.

The RVI has dropped and tells us that most of the volatility (as measured by the indicator) has disappeared.

If this price action continues and a reversal takes place, there is a potential upside of 10-20%.

If the price action is unable to climb back up, we can set a stop loss at it's previous support at $224.

Comments

alex7sim

⋅ Sep 17, 2020 10:08 PM

Agreed... In the meanwhile theres good volume on this recovery here. Probably going to be a lot of people adding at these prices and it may take a couple more days to re surface. I'm in at $260 and holding strong. I'd only consider averaging down if it dropped under $200 which I feel is unlikely leading to their next Quarter numbers.