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Spotify shares jump as stock breaks above 200-day moving average
The move has taken SPOT about 4.5% higher to $539.33 and put the stock on track for its highest close since April, according to market data cited in the story.
Spotify Technology shares rose 4.5% to $539.33, extending gains from the prior session and moving the stock toward its highest close since April, according to Yahoo Finance.
The report says Spotify has crossed above the 200-day moving average, a technical “crossover” event that Schaeffer’s Senior Quantitative Analyst Rocky White noted has occurred five other times over the past decade, with the stock higher one month later 80% of the time.
It also cited historical follow-through after similar signals, saying the average one-month gain after those crossovers was 7%, and that a move of that size from current levels would place SPOT above $577 for the first time since early January.
On options positioning, Yahoo Finance reported that Spotify’s Schaeffer’s Volatility Index (SVI) reading of 57% sits in the 31st percentile of its annual range, describing the stock as relatively affordably priced for options traders.