Spotify Technology S.A. (SPOT) is currently in a corrective counter-trend mode, specifically in a Flat structure in wave 4. The analysis on the daily chart indicates that SPOT has potentially found a top in wave 3 around $320 at MG1 and is now looking for support around $200 at MG2 as Minor wave 4 continues to develop. Traders should closely monitor these levels for signs of bottoming out and a potential reversal in price action.
On the other hand, the 4-hour chart shows that SPOT is targeting further downside in wave {c} of 4. An increase in volume suggests that more downside pressure could be forthcoming, with the critical 0.618 retracement of wave 4 vs. wave 2 standing at $265. This level will be important to watch for potential support and any indications of a reversal in the trend.
Overall, the Elliott Wave analysis for SPOT indicates a potential downward movement in wave 4, with support levels to watch at $200 and $265. Traders should pay close attention to these levels to determine potential entry and exit points for their trades. By understanding the Elliott Wave structure and direction, traders can make informed decisions based on the current market conditions.
In conclusion, the Elliott Wave technical analysis for Spotify Technology S.A. (SPOT) suggests a corrective trend in wave 4 with a potential bottoming out at support levels around $200 and $265. Traders should use this information to guide their trading decisions and look for potential reversal signals as the price action develops. By incorporating Elliott Wave theory into their analysis, traders can gain valuable insights into market trends and improve their trading strategies for success in the financial markets.
