Short $SHOP at $215.
Updated
Shopify has had an incredible run, however during this run its MACD has started to curl over and its money flow has been negative, all the while as it approaches a key RSI reversal level and Yearly Fibonacci Pivot Point (R3), indicating a potential reversal.
On the technical analysis chart I've included a line denoting the decreasing money flow and bearish MACD. This flashing reversal signal has been in spite of a parabolic move in price heading to new all time highs.
Throughout 2018, the stock has been a magnet for its yearly Fibonacci R3 Pivot, and it looks like its headed to test its yearly R3 pivot for 2019 as well. A good low risk short entry (assuming the price gets there on this run) would be to position just at or slightly above the yearly R3 fibonacci pivot point at $215, a stop could be placed just above.
This presents a high risk-reward setup, as the stock has gone from its lows to new all time highs without any significant pullback, while the stock internals have been deteriorating rapidly.
This opportunity should present itself sometime between now and April 2nd, 2019. Traders should set up alerts to monitor the stock for price appreciation and stock internals deterioration for a fantastic short setup.
On the technical analysis chart I've included a line denoting the decreasing money flow and bearish MACD. This flashing reversal signal has been in spite of a parabolic move in price heading to new all time highs.
Throughout 2018, the stock has been a magnet for its yearly Fibonacci R3 Pivot, and it looks like its headed to test its yearly R3 pivot for 2019 as well. A good low risk short entry (assuming the price gets there on this run) would be to position just at or slightly above the yearly R3 fibonacci pivot point at $215, a stop could be placed just above.
This presents a high risk-reward setup, as the stock has gone from its lows to new all time highs without any significant pullback, while the stock internals have been deteriorating rapidly.
This opportunity should present itself sometime between now and April 2nd, 2019. Traders should set up alerts to monitor the stock for price appreciation and stock internals deterioration for a fantastic short setup.
Note
We're starting to enter the target sell / short zone. See red circle in the chart. We may not make it all the way to R3 on this push. Skilled straders should be paying close attention to the daily formation for a topping pattern now.Note
As I mentioned yesterday this down move may already be beginning. we have a gap down at the open, if we see continued sell off this will likely mark the start of a correction in the inflated value of the stock. I'm positioned short.Trade active
Trade closed: target reached
Closed out a little early, given the overall bullishness of the marketNote
Nice move from $212 to $200
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