Spotify Stock to Lose Half of its 2020 Uptrend
Is this a good time to join Spotify bulls? Let’s see how the situation looks like from an Elliott Wave perspective.
The daily chart above puts Spotify advance from its December 2018 low in Elliott Wave context. The chart reveals that the uptrend from the 2018 low at $103.66 is shaped as a complete five-wave impulse. The pattern is labeled 1-2-3-4-5, where the five sub-waves of wave 5 are also visible.
There is also a good alternation between the correction, wave 2 is a time-consuming flat pattern that completed during the coronavirus panic of 2020, and wave 4 is a sharp zigzag move. According to the theory, a three-wave correction follows every impulse.
The corrective phase of the Elliott Wave cycle typically erases the entire progress achieved by the fifth wave. Applying this to SPOT stock makes us expect a decline back to the support of wave 4 near $220 a share. If this count is correct, a ~43% drop from the top at $387 seems to have just begun. The double bearish RSI divergence between waves 3 and 5 also indicates the bulls are running out of steam
What's your view on Spotify Stock? Let me know in the comment section.
Thanks for reading!
Veejahbee.
The daily chart above puts Spotify advance from its December 2018 low in Elliott Wave context. The chart reveals that the uptrend from the 2018 low at $103.66 is shaped as a complete five-wave impulse. The pattern is labeled 1-2-3-4-5, where the five sub-waves of wave 5 are also visible.
There is also a good alternation between the correction, wave 2 is a time-consuming flat pattern that completed during the coronavirus panic of 2020, and wave 4 is a sharp zigzag move. According to the theory, a three-wave correction follows every impulse.
The corrective phase of the Elliott Wave cycle typically erases the entire progress achieved by the fifth wave. Applying this to SPOT stock makes us expect a decline back to the support of wave 4 near $220 a share. If this count is correct, a ~43% drop from the top at $387 seems to have just begun. The double bearish RSI divergence between waves 3 and 5 also indicates the bulls are running out of steam
What's your view on Spotify Stock? Let me know in the comment section.
Thanks for reading!
Veejahbee.
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