We have a quick and easy set up for you to wrap up the week and this trade comes to us from Spotify Technologies (SPOT). SPOT has been trending up as the rest of the market continues to climb, however, as it comes up to some resistance, that momentum has stalled out a little bit.
Don’t worry, this stalling out of the momentum does not invalidate the trade we have on watch. As you can see in the video below, SPOT has formed a slight ascending triangle with the upper bound of that pattern around the 152 mark. A temporary break of that level on Thursday, going as high as 154.6, signals that a upward break could be on the horizon.
If you’re looking to get in on this rally, there are two ways you can approach this kind of trade. One, you could wait for a possible retest of the lower bound of this formation, giving you the best entry for a long play. Two, you could go a week or two out with your expiration, targeting that 160 level.
That price target comes from the next major level of resistance for the stock. Should we continue to rise, that level would likely give the price some turbulence to navigate. So, keep this trade on watch or find your entry to best execute to the upside, but remember…
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