My buying criteria would be a break above the resistance zone. As a trader, I would wait for the Fed decision on Wednesday before deciding whether to buy. We have seen stocks rally after Fed rate hikes in the past, but there are no guarantees we will see the same this week. However, there is also a possibility that the FOMC could go with a 100 basis point hike. Later this week, we expect the Federal Reserve to announce its interest rate decision, with many analysts expecting a 75 basis points hike. Still, this target is reachable if we get a decisive break above the current resistance level. However, the stock is trading near the top of the range and seems ready to break out and head higher.Ī break higher could lead to a rally up to the $159 level, which is above the $140 price target set by Swinburne. Since then, the stock has been trading in a tight range, with a high of $117 and a low of $90.

In addition, the music streaming company has been trading sideways since mid-May, when it bottomed at $90.86. Turning to the technical picture, we see that Spotify stock has formed a bottoming pattern on the daily chart below. Swinburne pointed out that while Spotify has underperformed this year, he still expects the global music streaming industry to keep growing in double digits for the foreseeable future, even with the slowing economic growth. In an investor note issued today, Morgan Stanley analyst Benjamin Swinburne lowered his price target on the music-streaming giant from $170 to $140 but maintained an overweight rating on the company.Īlso read: 12 Best Shares To Buy As A Beginner.

Spotify stock outlook