To The Moon

Hi everyone! Today we’ll cover a stock that I have previously covered before:

Shopify (NYSE: SHOP)

On first glance, I note declining volume on this uptrend, after it broke out of a 6-7 month consolidation period. That is a sign of an unsustainable uptrend, for the time being. RSI also appears to be rolling over and forming a bearish divergence on the weekly timeframe.

On the daily timeframe, the divergence is more apparent. You can see a very orderly higher high and higher low pattern with price, but a bearish divergence is forming. Moreover, volume patterns show decreased volume, and in the past few trading sessions, low volume on candles with bottom-heavy wicks. This suggests that the dips aren’t being bought, and is indicative of potential distribution at this level before a move lower.

I am of the belief that 83.36 is the top for the time being, and expect SHOP to test lower before heading higher (i.e. healthy RSI reset). This pattern is reminiscent of GOOG before its last earnings. There was bearish divergence on weekly and daily timeframes which preceded a strong dump post-ER.

Sentiment: SELL

Summary (with Price Targets - NFA):

• Broke out of bullish descending channel and back into the main ascending channel, however bearish divergence is forming with difficulty breaking over 83

• Measured move for this downtrend would be the significant bottom wick at 55.51 (2nd Nov’23, Post-ER candle)

• SHOP ER is on 13th Feb, and could see increased volatility going into the event - it has been running into ER, and so expectations could already be priced in; I would be wary going with a large long position into ER. If you bought at 30s you’ll be fine though.

Alright, that’s all for this newsletter. Till next time!

$Shopify(SHOP)$ $Apple(AAPL)$ $Tesla Motors(TSLA)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ Trust-ETF(QQQ)$

@TigerStars @TigerWire @TigerEvents @CaptainTiger @MillionaireTiger