Spotify - Earnings due tomorrow. Anything less than 'better' could see a sell-off as indicators showing overbought conditions

Taking a look at Spotify ahead of its earnings call tomorrow. Currently, the tech company is trading at around $222.28 a share and is flat on the day, which is quite common ahead of key earnings. We can see that Spotify benefits from the Santa rally, rising as much as 51% from October till this week. We can see that on the weekly interval, there is support below with the less important level along the steeper trendline, reading $206.13. A break below it would only then create the possibility of a move lower towards the more important support of $187.77. Towards the upside, the next psychological resistance level is marked by the white oval on the left hand side of the chart. This resistance reads $247.04, which would be an approximate 10% gain from current levels. A break and close above this resistance would then allow investors to eye up the $260-$270 area. However, if we look at the technical indicators, we can see that they are suggesting somewhat overbought conditions. The MACD is at its highest level since 2021 and the RSI is reading 77. Therefore, anything less than ‘better-than=expected’ earnings could see a significant decline in the short-mid term.