Spotify Technology S.A. is an international media services provider. It is legally domiciled in Luxembourg and is headquartered in Stockholm, Sweden. Founded in 2006, the company’s primary business is providing an audio streaming platform, the “Spotify” platform, that provides DRM-protected music, videos and podcasts from record labels and media companies.
We’ve all heard of Spotify Technology #SPOT. You are probably one of Spotify’s users; I’m a user myself and am very happy with it. That does not mean that I should be buying shares of Spotify #SPOT right where it’s trading, around $137 per share. Why buying Spotify #SPOT share is not a good idea? Because there is a strong monthly supply imbalance that has gained control around $148, and the underlying stock is reacting strongly to it as we expected, it has already dropped from $137 to $148. See Spotify #SPOT monthly supply and demand analysis below.
A very strong monthly supply has taken control of Spotify #SPOT; buying Spotify shares is not allowed; it’s suicidal. Could the monthly supply imbalance be eliminated? Of course! There are price action signs and rules that will tell us when we can and when we cannot trade these imbalances.
You can learn about those by joining Set and Forget’s stock trading course.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades on Spotify #SPOT lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name, and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pull back or dip into the price levels we want to trade; in our case, these price levels are made of supply and demand imbalances.
Join our supply and demand trading course if you want to learn how to trade using our supply and demand trading strategy.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
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