SPOT: A rebound after a retest

5/22/2026 - Spotify Technology (SPOT), an entertainment stock, dropped from an early March peak at 570.64 to retest a downside target zone from 445 to 405 (top pattern count and early February low) in early May (March 11, 2026, Straight from the Chart).

SPOT has bearish trends across its absolute price chart, relative chart versus the S&P 500 (SPX), and volume advance decline indicator (VAD) as defined by declining 26- and 40-week moving averages (WMAs).

In order to confirm a bottoming pattern - double bottom - from the 411-405 lows, SPOT must decisively breakout above its declining 40-WMA and early March lower high at 568.17-570.64. Until then, the downtrend remains intact.

The declining 40-WMAs and early-March lower highs also offer resistance on SPOT vs. the SPX and on the VAD.

Bottom line: SPOT must reclaim its declining 40-WMAs and early-March lower highs across its absolute price, relative price, and VAD to have confidence that the stock has confirmed a bottom.

Chart 1: Spotify Technology (SPOT) (top), relative to the S&P 500 (center), and volume advance decline (bottom): Weekly chart

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