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  • Swing Trade Idea (SPOT) – April 25, 2024

    Apr 25, 2024 Swing Options Tips Comments Off on Swing Trade Idea (SPOT) – April 25, 2024

    Our bearish trade for Thursday, April 25th is Spotify Technology S.A. (SPOT). SPOT is part of the Technology Sector, which traded at -5.03% over the last month, with SPOT performing at 7.37% over the same period.

    SPOT has been extremely bullish since Dec 2022 and has now traded into an area of resistance at around $300. SPOT already started to pull back from this level while the Technology Sector is also pulling back from an uptrend channel. AS SPOT is extremely overbought, we believe that a pullback to around $250 would be expected, over the next few weeks.

    As a close, if SPOT were to trade above $290 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $14.44.

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