SPOT - OOPS Reversal - 2025-05-23

Following President Trump’s social media post announcing a proposed 50% tariff on the EU, many stocks gapped down in the pre-market, setting up potential OOPS reversal opportunities.

Spotify gapped down and found support at the 21-day EMA, then rebounded and reclaimed the previous day’s low—offering an excellent entry point. This reversal setup was further strengthened by multiple technical signals: support at the 21-day EMA, a breakout above a downward trendline, and a reclaim of the 10-day EMA.

The confluence of these factors makes this a promising setup with potential for further upside.