Spotify Jumps 3.06% To $666.81 As Technicals Signal Bullish Continuation

Spotify Technology (SPOT) rose 3.06% to close at $666.81 on August 6, 2025, recovering from prior volatility. The following technical analysis assesses key indicators across multiple methodologies.
Candlestick Theory
Recent candlesticks show a reversal pattern emerging from the August 5 low of $637.43 and subsequent bullish engulfing structure on August 6, where price action reclaimed over two-thirds of the preceding session's range. This positions $640-$645 as immediate support, reinforced by the July 31 swing low at $615.63. Resistance is evident near $670 (August 6 high) and more substantially at the $700 psychological barrier, aligning with the July 28 peak at $710. Price closed near the session high with minimal upper wick, suggesting bullish conviction.
Moving Average Theory
The 50-day SMA (~$650), 100-day SMA (~$620), and 200-day SMA (~$580) maintain ascending order, confirming the primary bullish trend. Price trading above all three averages reinforces positive momentum. Notably, the 50-day SMA provided dynamic support during the late-July pullback, while the golden cross (50-day above 200-day) established in Q1 2025 remains intact. Current price positioning above the short-term 50-day SMA suggests continued intermediate strength.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover, with the MACD line accelerating above its signal line, indicating building upward momentum. Concurrently, the KDJ oscillator shows K-line (71) and D-line (65) in overbought territory, though without clear bearish divergence. While KDJ's overbought reading suggests potential near-term exhaustion, MACD's strengthening trajectory implies any consolidation may be temporary. Both oscillators agree on near-term bullish bias but warrant monitoring for divergences if prices stall near resistance.
Bollinger Bands
Bands expanded markedly after the July 29 volatility surge, accommodating the recovery rally. Price currently hugs the upper band ($668), typically signaling overbought conditions. However, the absence of reversal candles and sustained upper-band proximity suggest continuation potential. The bandwidth expansion supports this thesis, with the 20-day SMA ($653) acting as dynamic support. A close below the midline would signal waning momentum.
Volume-Price Relationship
Volume trends show divergence: The July 29 sell-off saw record volume (11.5M shares), confirming capitulation, while the subsequent rebound occurred on diminishing volume. The August 6 advance registered only 2.16M shares – below the 20-day average. This volume-price divergence implies weak participation in the recovery, reducing confidence in sustainability. High-volume rejection near $700 would reinforce this resistance.
Relative Strength Index (RSI)
The 14-day RSI reads 62, placing it neutrally after rebounding from oversold levels during the late-July dip. While not overbought, its recovery trajectory aligns with price action. RSI divergence is absent, but traders should monitor for bearish signals if it approaches 70 without corresponding price highs. Current positioning allows room for additional upside before overbought warnings materialize.
Fibonacci Retracement
Applying Fib levels to the July decline from $710 (high) to $615.63 (low), key retracement zones emerge: 23.6% ($637), 38.2% ($651), and 50% ($663). The August 6 close above the 50% level ($666.81 > $662.82) signals bullish strength, targeting the 61.8% resistance at $673.95. This zone aligns with horizontal resistance at $670-$675, creating a high-probability profit-taking area. A decisive break above $674 would shift focus to the 100% retracement at $710.
Confluence points strengthen the $640-$645 support (alignment with 38.2% Fib, July swing low, and volume shelf) and the $670-$675 resistance (Bollinger Band, 61.8% Fib, and prior price congestion). Divergences between volume and price recovery warrant caution, while MACD/KDJ alignment favors near-term upside momentum within the broader bullish structure.