Spotify stock is seeing support from a myriad of moving averages
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Music streaming name Spotify Technology SA (NYSE:SPOT) just broke above the round $200 level, which it failed to overcome in December. Furthermore, the stock has found support at its 20-day moving average, while its 200-week moving average also just turned supportive after providing resistance in July 2023.
SPOT is also testing its 200-day moving average, a familiar trendline where Apple (AAPL) tends to find lows when remaining in an uptrend. With all of this technical support in place, now looks like a good time to weigh in on the stock’s next move higher.
Despite the stock’s outperformance, 13 of the 33 analysts in coverage carry a “hold” or worse rating, leaving plenty of room for upgrades. Plus, SPOT is sporting attractively priced premium at the moment, per its Schaeffer’s Volatility Index (SVI) of 29%, which ranks in the extremely low 1st percentile of its annual range.
Our recommended call option has a leverage ratio 6.3, and will double on an 18% jump in the underlying shares.