Spotify Stock Surges 4.91% to Near Record High on Strong Technical Momentum

Spotify Technology (SPOT) rose 4.91% to close at 732.81 in the latest session, marking its fourth consecutive day of gains and bringing its cumulative advance over this period to 6.32%. This upward momentum occurs near the stock's all-time high of 737.69 established on July 7, 2025, warranting a multi-faceted technical assessment.
Candlestick Theory
Recent price action reveals a bullish pattern with four successive white candles closing progressively higher, culminating in an August 15 marubozu-like candle (open at 721, close near the high at 732.81). This suggests strong buying conviction, especially as it approaches the psychological resistance near the 737.69 historical peak. Critical support is visible at the July 29 low of 620.01 and the August 11 swing low of 689.23, both coinciding with high-volume reversal zones.
Moving Average Theory
The short-term 50-day moving average (approx. 678) crossed above the 100-day MA (approx. 638) in late July, while both remain below the rising 200-day MA (approx. 560). This configuration signals a bullish intermediate trend. The current price trades well above all three moving averages, reinforcing upward momentum. The 50-day MA has provided dynamic support during August pullbacks, enhancing its technical relevance.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum since early August, with the MACD line maintaining its position above the signal line. KDJ readings (K: 85, D: 78, J: 99) indicate overbought territory. While this suggests near-term exhaustion risk, the absence of bearish divergences implies persistent upside pressure. Both oscillators align in signaling bullish momentum continuity, though elevated KDJ warrants caution for pullbacks.
Bollinger Bands
Bollinger Bands (20-period) expanded sharply after August 11, reflecting volatility resurgence as prices broke above the 705 resistance. The August 15 close near the upper band (approx. 744) signals strength but also hints at short-term overextension. The previous contraction phase between July 28–August 8 preceded the current breakout, validating this classic volatility signal.
Volume-Price Relationship
Volume surged 111% to 3.00 million shares on August 15—the highest since July 30—confirming conviction behind the breakout. The rally’s sustainability is bolstered by rising volume across all four advancing sessions. Earlier distribution patterns (e.g., the July 29 sell-off on 11.5 million shares) contrast sharply with current accumulation, supporting bullish continuation.
Relative Strength Index (RSI)
The 14-day RSI (calculated at 72) has entered overbought territory (>70), suggesting potential near-term consolidation. However, its upward trajectory and lack of bearish divergence with price action mitigate reversal concerns. Historically, SPOT has sustained elevated RSI levels during strong trends, limiting its reliability as a standalone reversal indicator in this context.
Fibonacci Retracement
Applying Fibonacci to the swing low of 332.82 (August 16, 2024) and high of 737.69 (July 7, 2025), key retracement levels emerge: 535.25 (23.6%), 610.11 (38.2%), and 535.25 (50%). The July correction found firm support near the 38.2% level (620.01 on July 29), while the current rally has decisively reclaimed the 78.6% level (700.71). Confluence exists at 720–737, where the 127.2% Fibonacci extension aligns with the historical high.
Confluence occurs at the 720–737 zone, where the psychological resistance, prior high, and Fibonacci extension consolidate, explaining the recent volatility. Minor divergences include RSI overbought signals conflicting with sustained MACD momentum, though volume and candlestick patterns dominate the bullish thesis. Short-term consolidation appears probable near resistance, but technical structure suggests breakout potential above 737.69 could catalyze further upside.