Spotify Jumps 4.47% To 701.08 As Bullish Technicals Signal Breakout Momentum

Spotify Technology (SPOT) rose 4.47% in the most recent session, closing at $701.08 after testing resistance near $708.19. The following technical analysis evaluates this movement within the context of historical data.
Candlestick Theory
SPOT's recent candlestick pattern reveals a bullish breakout, with the June 4th session forming a long green body that engulfed the previous two days' trading ranges. This follows a hammer formation on May 30th after the $636.67 low, signaling reversal confirmation. Key resistance is now evident at $708.19, while immediate support emerges at $676 (June 4th low) and stronger historical support at $635–$637. The absence of upper wicks near the $708 resistance suggests buying conviction.
Moving Average Theory
The moving average structure confirms a robust uptrend. The 50-day SMA ($650–$660) crossed above the 100-day SMA ($620–$630) in early May, with both maintaining distance above the rising 200-day SMA ($510–$520). Current price action sits comfortably above all three averages, reflecting sustained bullish momentum. The orderly sequence (50-day > 100-day > 200-day) indicates entrenched bullish alignment without significant convergence threats.
MACD & KDJ Indicators
MACD exhibits a bullish posture, with the MACD line crossing above its signal line in late May during the $636–$665 reversal and continuing to expand. This momentum acceleration aligns with price highs. However, the KDJ oscillator registers overbought conditions, with the %K (94) and %D (88) surpassing the 80 threshold. While both indicators remain in uptrends, the KDJ’s extreme reading suggests near-term exhaustion risk, creating mild divergence from MACD’s steady ascent.
Bollinger Bands
Bollinger Bands (20-day) show significant expansion after tightening in late May, reflecting volatility surge accompanying the breakout. Price currently trades near the upper band ($695–$700), typically indicating overbought territory. Historical parallels occurred in late April when upper-band tagging preceded a brief consolidation. Band expansion supports continuation potential but necessitates monitoring for mean-reversion signals if price retreats toward the midline.
Volume-Price Relationship
Volume analysis validates the breakout. The 4.47% surge on June 4th occurred on 2.52 million shares – 68% above the 20-day average. Similarly, the May 30th 4.47% rally saw 3.16 million shares (highest volume in a month). Down days like May 29th (-4.11%) displayed lower volume, confirming accumulation during advances. This volume/price consonance suggests institutional participation and trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads 72.3, breaching the overbought threshold of 70. While caution is warranted during such extremes, RSI’s trajectory remains upward-sloping with no bearish divergence. Notably, SPOT has sustained RSI >70 for extended periods during prior uptrends (e.g., February–March). This may indicate persistent momentum rather than imminent reversal, though pullbacks to reset RSI are probable.
Fibonacci Retracement
Applying Fibonacci to the 2024 low ($322.55 on June 5, 2024) and the 2025 high ($708.19) reveals key levels. The recent consolidation respected the 38.2% retracement ($561), which now acts as major support. The 23.6% level ($635) provided pivotal support during the May sell-off. Current price trades near the 0% extension, implying minimal overhead resistance beyond $708. Confluence exists as $635 aligns with horizontal price supports and the 50-day SMA.