SHOP - Resumption lowerSHOP had a pretty ugly candle Friday, and the chart looks sick (bad sick), so I would project it resumes lower into earnings. Maybe even due to increasing costs, earnings won't be too great as well.
SHOP trade ideas
Falling Wedge- BullishShopify looking really nice here, certainly worth noting the 200 day EMA acting as strong support for SHOP as it has bounced off it three times since March, additionally Shopify does have earnings coming up on 10/28'. However, will be looking for a breakout from this falling wedge (Broader Market Conditions Permitting)- Just some support and resistance levels and some RSI based supply and demand zones to keep an eye on as well- bullish
- Big falling wedge forming on the daily timeframe
- EMA's starting to curl upwards
- Hammer right off the 100-day EMA
- Sitting on its 20-day SMA (Not Pictured)
- Bollinger bands squeezing on shorter timeframes
PT1- $1,435.50
PT2- $1,443.81
PT3- $1,451.70 + Breakout
A quick analysis of SHOP, what can we see? Today we will take a quick look at the SHOP chart.
What we can see here is:
a) Ascending Channel, the price was rejected from the lower trendline.
b) ABC corrective pattern (apparently finished).
c) Support/Resistance zone (we want to see the price above that level, to think in bullish opportunities).
Based on all those items, if the price reaches our green horizontal line, we will consider that to activate the bullish view towards the targets we have defined using fibo extensions.
Our invalidation level will be below "C" either the analysis is executed or not.
Thanks for reading!
ABC BullishPossible stop under C, or under 1285.90 or last area of support that you see. Sometimes long entry level can serve as support as this has passed that. Earnings 10-28 BMO/before market open.
Long entry level can be important to hanging on so getting a good one can help in the long run. SHOP was below the bands set on 80 but quickly returned to the interior of the bands.
At this moment I see a green Doji as the daily candle which represents indecision.
No recommendation.
Price is still under the 50 SMA which is a bit droopy and crossed down through the 20. Price is over the 200 which is sloping up. ABC Bullish and target is D. Targets calculated using the length of the AB leg and fib levels. The CD leg can sometimes equal the AB leg, or it can be a portion of it, or an extension of the AB leg. In this pattern C needs to be above A. B is the peak or the high of the pattern.
Possible cup and handleKeep this on watch, looks like a possible cup and handle pattern developing. Need to see if that handle actually forms. Either way 1429 is breakout.
$SHOP looking to get back to the VWAPAfter a healthy drop, SHOP is ready to go back towards the VWAP around $1,475. Still room to go after this 100 point move from $1,285. Not playing this, but watching
$SHOPShopify stock has made long-term investors a boatload of money.
If you would have been able to buy shares of the e-commerce subscription platform at its 2015 IPO price, you'd be sitting on gains of nearly 9,000%!
In this short period, the company has risen to become the largest Canadian company by market capitalization with a valuation approaching $200 billion.
Still, the company has its work cut out for it to earn "four-comma status" by 2025.
In the second quarter, Shopify did so by beating analyst expectations on the top line by reporting total revenue growth of 57% and its first $1 billion quarter. However, the numbers are even better than they initially appear when broken down by segment.
Shopify's smaller revenue source is subscription services, the fees it charges sellers, or "merchants," to use its tools. The second is merchant services, which consists of the revenue Shopify earns from those merchants in the form of add-on services like payment processing and transaction fees.
In the year-ago quarter, merchant services grew faster than subscription revenue, which makes sense when you consider the pandemic increased the demand for online shopping. This year's growth was led by subscription services, which was boosted by more merchants beginning to use Shopify's e-commerce platform and existing merchants buying higher-priced subscription bundles.
When we take a look at the technical side of things Shopify looks incredible on the higher timeframes.
Looking at the weekly chart we are currently sitting at long term support and this might be something you might want to keep your eyes on going into next weeks trading sessions.
If price is able to hold these levels we could see Shopify continue it way up.
When we move down to the daily chart for indicators we have;
MACD curling
RSI breaking above 50.
Watchlist this.
SHOP is highly undervalued at this pointShop just hit its long term support and has similar RSI levels as March 2020 (Covid flash crash). IMO SHOP is highly undervalued and has been consolidating around the 17000-1900 range. Next leg up should take it to $3000 and then finally the 5th wave could propel us to around $4200 in the next 6 months. Going long with full force. Not financial advice!
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SHOPCalls can work over 1400 tomorrow. Levels above 1400 are 1431, 1453.
Trade Idea: 1415C 10/8 *lotto (high risk)
BID/ASK: 3.30/5.00
SHOP: Ascending Channel (45%), WEEKLYShopify currently in an ascending channel on the Weekly chart.
Bounces back and forth since March 2020.
Watching for a bouce back when price action reaches support at 1300$.
Will likely bouce back on 50 MA which also is the bottom channel.
If confirmed:
Price target = 1882$
Stay humble, have fun, make money!
Shopify about to hit long term supportShopify about to hit it's long term support. Longing at CAD$1650, Sell at CAD$1970
4h Timeframe SHOPSmallwr time fram using here.
4h.
Inverse head shoulder which shows on daily also.
Could move up here.
$SHOP huge rejection of the VWAP...Relative weakness today, came up to the VWAP and rejected hard. Long term put spreads in play still but this one is very indecisive. Took a flier on one put spread, but wouldn't play until we confirm under $1,400 or above $1,500, until then it's just playing with weekly premiums.
$SHOP back to the VWAPWith the market strength again, this is rebounding nicely, however, still needs to clear the VWAP. No position, short hedges closed. On watch for a long/short based on more data in the next few days...
$SHOP so far holding....This is a strong stock, so always potential that this was just another test before the next big move higher. The play was a technical opportunity based on market weakness, so when the market is strong this holds. Still keeping my $1,350/$1,300 put spread another day just in case tomorrow pulls back hard again. Added a $1,500/$1,550 call spread on the option that all stocks, including this, recover big into the end of the week. 50/50 chance at this point...
$SHOP under the VWAP...First target around $1,240, next $1,130, all based on current market weakness. Will need strong rebound to keep this from dumping more...
SHOP descending wedge is as at a lower edgeWhile I'd look for a breakout to the upside to this descending wedge, I think it's equally likely that price will bounce off my purple breakout line and head down for another leg. We'll have to wait and see.
It's also noteworthy to notice we're now trading below the grey resistance area, so that might add an additional ceiling to bounce off.
SHOPIFY (1W) - Bear market incoming. Hi Traders,
Cosider this Analysis of SHopify as one of the representative companies in e-commerce sector. Which could bealredy marked as Over-valued.
Chart Show all important informations.:
+ RSI and MACD are alredy showing Divergencies.
+ Market is Hesitating at curent price (some players are taking profit).
+ according to Elliot wave theory, you can see extended Wave 3. Wave 5 is alredy 1:1 with Wave 1. And 5 impulsive subwaves are also visible at 1D chart.
Market / some sectors can be very overvalued right now. Let me know what you think about this idea. Best would be to post you EW Count ;) (Im Always glad to learn someting new, and discus different opinion).
