In the present exposition, we will undertake a thorough examination of the price movements exhibited by Spotify Technology S.A. (SPOT) through the lens of the Elliott Wave Theory. The intention behind this analysis is to offer traders valuable insights into the identification of potential opportunities based on the prevailing market trends and structure. Findings sourced from both the daily and 4-hour charts will be scrutinised to furnish a comprehensive understanding of SPOT’s market behaviour.
Upon careful consideration of the daily chart, it becomes apparent that SPOT has reached the zenith of wave 3 at MG1, with a peak of $320. At present, our attention is turned towards identifying potential support in the vicinity of MG2 at $200, as Minor wave 4 unfolds. It is strongly advised for traders to maintain a vigilant presence at these levels, with the aim of identifying signs of a potential reversal and a bottoming out phenomenon.
Shifting focus to the 4-hour chart, SPOT is evidently demonstrating an inclination towards further downturn in wave {c}. Heightened trading volume denotes an increase in downward pressure, with the 0.618 retracement of wave 4 versus wave 2 positioned at $265. This price level carries substantial significance in terms of potential support, and it necessitates meticulous observation for any indications of a reversal.
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Looking towards the future, various other market developments warrant attention, such as the downslide of the USD, the upsurge of GBP/USD, the performance of Gold, alongside the strides made in Artificial Intelligence at OpenAI as well as the impending events within the financial markets.
In summation, the application of the Elliott Wave Theory in the analysis of Spotify Technology S.A. (SPOT) brings to the fore potential movements within the counter-trend, corrective, and flat structures. As traders navigate their investment decisions, due cognisance must be given to the risks involved, with the solicitation of professional advice whenever deemed necessary.
References:
1. EUR/USD rises above 1.0900 as USD selloff picks up steam – FXStreet
2. GBP/USD extends rally toward 1.3000 on broad USD weakness – FXStreet
3. Gold remains on track to end week above $2,400 – FXStreet
4. Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving – FXStreet
5. Week ahead – ECB set to hold rates, plethora of data on the way – FXStreet