Spotify Jumps 3.34% As Technicals Signal Bullish Momentum Above Key 700 Support

Spotify Technology (SPOT) surged 3.34% in its latest session to close at $731.08, rebounding sharply from the day's low of $702.34. This price action sets the context for our technical analysis of the one-year dataset.
Candlestick Theory
Recent candlestick patterns reveal significant momentum shifts. The June 23 bullish engulfing candle (low: $702.34, high: $732.79) completely overshadowed the preceding bearish candles, signaling strong demand near the $700 psychological support. This level has been tested four times since early May, cementing its role as critical support. Resistance is evident at the June 23 peak of $732.79, coinciding with the February 2025 swing high. A confirmed break above this level could target the $750–$760 zone, while failure may retest the $680–$700 consolidation range.
Moving Average Theory
The moving average structure confirms a sustained uptrend. The current price trades above all key SMAs (50-day ≈ $650, 100-day ≈ $590, 200-day ≈ $510), with the 50-day SMA providing dynamic support during the May pullback. Notably, the 50-day crossed above the 200-day in Q1 2025, triggering a "Golden Cross" that remains intact. The ascending alignment (50 > 100 > 200) signals bullish momentum, though the widening gap between price and the 200-day SMA ($221) warrants caution for potential mean reversion.
MACD & KDJ Indicators
The MACD histogram turned positive in early June following a bullish crossover near the zero line, supporting the recent rally. Meanwhile, the KDJ oscillator shows the %K line (85) crossing above the %D line (78) in overbought territory. While this indicates strong momentum, it aligns with prior peaks that preceded 5–8% pullbacks. No bearish divergence is present, though the KDJ's overbought persistence suggests near-term exhaustion may be developing.
Bollinger Bands
Volatility expanded sharply in late June, with the bands widening as price challenged the upper band ($730±). This follows the "Bollinger Squeeze" observed in mid-June when bandwidth contracted to 4-month lows, typically preceding directional breaks. Price has now closed above the upper band for two sessions – a statistically rare event that often precedes consolidation. The midline ($690) offers immediate support should a reversion occur.
Volume-Price Relationship
Volume trends validate bullish momentum. The June 4 breakout rally (4.47% gain) occurred on 2.52M shares – the highest volume since November 2024 – confirming institutional participation. Similarly, the June 23 surge was supported by above-average volume (1.56M vs. 30-day avg 1.65M). Notably, down days like June 20 (-0.39%) saw lower volume, indicating limited conviction in sell-offs. Accumulation patterns are evident, with volume spikes consistently accompanying upside moves.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory but remains below the 70 warning threshold. During the May-June consolidation, RSI repeatedly bounced from the 40–45 level, reinforcing its role as dynamic support in uptrends. The current reading suggests room for upside before technical exhaustion, though proximity to overbought levels increases vulnerability to profit-taking. Bearish divergence is absent, as RSI confirms recent price highs.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from November's low ($419.39) to June's high ($732.79) reveals critical levels: The 23.6% retracement ($632) supported prices during May's sell-off, while the 38.2% level ($577) aligns with the 100-day SMA and March consolidation. These form a major support confluence. To the upside, the 161.8% extension of the Q1 2025 rally projects toward $775–$800, though significant overhead resistance exists near $750 from historical peaks.
Confluence & Divergence Observations
High-confidence support emerges at $680–$700, integrating the 50-day SMA, psychological support, and prior consolidation. Resistance near $732–$740 combines the current high and February's peak. The most notable confluence appears at the 23.6% Fibonacci ($632) and 200-day SMA, creating a macro-level floor. While oscillators show overbought signals, no bearish divergences contradict the price structure. The June volume breakout, MACD crossover, and Bollinger expansion collectively suggest the uptrend may have further momentum, though the KDJ and Bollinger positioning increase near-term pullback probabilities to the $700–$710 zone.