This Is Why Spotify Is In The Radar Of Everyone Now

This Is Why Spotify Is In The Radar Of Everyone Now

SPOT has been respecting a strong ascending channel, now testing a key resistance (white line) which could be part of a triangle chart pattern.

🔼 Bullish case: A breakout above resistance could trigger strong momentum and drive price to new ATHs. 🚀

🔽 Bearish case: If the channel is lost, price may fall to the main support, opening the door for a more lateral or bearish phase if that support is also lost.


Let’s add the fundamental context:

📈 Strong Revenue Growth
Spotify has been steadily increasing revenue through premium subscriptions and advertising. Ad revenue has been particularly strong, showing resilience in a slowing economy.

🌍 User Base Expansion
MAUs continue to grow globally, with double-digit YoY increases, supporting long-term growth.

💵 Profitability Improvements
After years of heavy investment, Spotify has recently reported positive operating margins, which has been a key driver of the rally.

⚖️ Analyst Consensus
The stock is now trading close to the average Wall Street target price ($719). This means that while the business is improving, analysts are cautious on valuation, explaining why the price is fighting at current levels.


⚠️ Trading plan idea:

Breakout above resistance → bullish play, but manage risk as upside could be capped by valuation and previous ATH acting as resistance. A 10% rally is very probable after the break.

Breakdown of the channel → wait for lower entry near main support seeking for a pullback to the channel. If you are bearish, then wait for the break of the main support to short it. This is an easy 20% correction.