Expecting a +30% Move on Spotify in the Short Term

Good morning traders! Today we want to analyze Spotify, since in recent days much has been said about this stock and its movement in recent weeks has been remarkable.

🔸What we can observe is that from March to July of this year the price generated an astonishing rise of approximately 170%.

🔸Of course, after a strong move, a consolidation or correction of a similar magnitude is expected.

🔸So it was, the correction lasted approximately four months, and we can draw a flag pattern of this process.

🔸This week there was a clear and indisputable breakout to the upside, with a large bullish candle closing above all-time highs.

So, how do we project the target of the movement in this case that the price is at historical highs?

🔸The tool we use is the fibonacci extensions based on the previous momentum. This projection gives us that the first target of the movement is approximately $351 and the second target $417, which would be, from the current level, a rise of 30%.