27Aug10:34 amEST

A Picture-Perfect View to End the Summer

Spotify has leveled off since its impressive rally in June and July, essentially marking time sideways in lieu much of a price giveback, especially relative to the size of prior run-up. 

While momentum players clearly have a keen interest in SPOT, the consolidation seems to have served its purpose, shaking and faking out some overzealous traders in terms of initially faded fresh upside breakouts. 

That type of price action, however, figures to have formed a discernible cup-and-handle bullish formation, seen below on the daily timeframe. 

In the context of an ongoing uptrend, the cup-and-handle is a reasonably reliable long setup, projecting roughly 15% higher if SPOT bulls can break and hold back over $196. In other words, SPOT to $220 certainly seems within the realm of possibilities, as the recent IPO has done quite well for itself since April. 

There is also Pandora, the perennially under-appreciated online radio service. P is sporting a rather coiled chart. And just because SPOT may be ripe to break higher yet, that need not much Pandora is to suffer a terrible fate, especially if bulls can clear $8.50 out of that long sideways base. 

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