There’s a good chance that shares of Spotify Technology S.A. (NYSE:SPOT) have run into resistance, which could put an end to the recent rally.
In August, levels around $203.50 were support. There were so many investors willing to buy the stock at this price that it made a big sell-off come to an end.
But now, Spotify's stock is below this important level.
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Many of the investors who bought now regret their decision to do so. A number of them decide to sell, but they're reluctant to take a loss.
As a result, they place their sell orders at their buying price. If there are enough of these sell orders, it will form resistance. This could put a top on the market.
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