Shopify - More Upside Ahead?
Here's an update on Shopify from my previous post several weeks ago. I lost my charts a while back so I have had to redo the charting for the stock.
Since my initial posts to buy Shopify at 36 or so, SHOP has since gone up by as much as 30+% to 54 before pulling back massively. Let's take a look at the daily chart.
Previously, the stock was accumulating around the 30-40 level before breaking out of the range and heading higher. It has found resistance in the 54s and has been headed back towards the 43.14 Fibonacci retracement level for a backtest of the breakout. If it holds this level, then there is a reason for me to believe that the stock is headed to the 60-70 range for a gap fill at 68-69 in the coming weeks and months. This is a market unlike any other - it is likely that the bear market is over for e-commerce stocks while stocks in other industries like CAT have much more room to go to the downside.
There are several possibilities for the stock in the coming days. If CPI is hot it could be headed for the gap fill at 40-41 before it rebounds massively. If Icahn were to close his short, then it is likely to trigger massive short covering across the indices which would cause a V-shaped move from the lows. If CPI is cool and the market decides to head higher before selling off then it could bounce off this 48.03 level to retest the 54s in the coming days.
That being said, you have to look at the big picture - the stock has been trading in, depending on how you see it, a rounding bottom setup or a massive inverse head and shoulders pattern. This is a stock that is likely to have bottomed at 29 and is primed for much more upside from here.
Good luck everyone! If you enjoyed this post, then leave a like and/or a comment on my post and follow me for more of such posts!
$SPDR S&P 500 ETF Trust(SPY)$ $QQQ(QQQ)$ $Shopify(SHOP)$ $Apple(AAPL)$ $Amazon.com(AMZN)$
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- TBI·2023-02-22update - market broke lower and SHOP closed within the gap it created. there's a chance that it fills the gap tomorrow then moves back up. keep it on watchLikeReport
- FrankRebecca·2023-02-14I don't think CPI will be hot again in short term.LikeReport
- Guy·2023-02-14Yeah looks like SHOP will rise again in short term.LikeReport
- ClarenceNehemiah·2023-02-14Would like to buy SHOP at 40 USD.LikeReport
- sunshine138·2023-02-14OkLikeReport
- Shishir·2023-02-14ok1Report
- Kucing·2023-02-14anything1Report
- victorlum·2023-02-14nice:)1Report
- T0000024852·2023-02-14hi1Report
- ccwee·2023-02-14nice1Report