HI guys, ive been following Shopify (SHOP), since its test of some important SUPPORT. This is a quick update from my previous idea. (Which you can find down below for more context)
We've currently bounced extremely bullish off the SUPPORT level, heading towards a SUpport turned Resistance line associated with the UPTREND channel i identified.
Normally when we break down or break above trend lines, that we have respected for some time. We tend to retrace back to that same line to Re-Test it.
Such is the case for Shopify.
Watch the Volume, an INCREASE/ SPIKE in Volume is absolutely needed to get back ABOVE, resuming our UPTREND.
But due note: we are heading into Labor day weekend, thus RISK of LOW VOLUME.
I would then consider if you were able to take positions from the SUPPORT level bounce
To think about off loading some of your position here.
If we do get back into the UPTREND channel from my previous POST. We can look to take new positions if SUPPORT is CONFIRMED.
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Stay tuned for more updates on SHOP in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy
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We have reached the RED Support turned Resistance line.
Retracing our decline from the break of this line. Price tends to do this and it becomes solid plays.
If you were able to take positions now would be an area to take some profits.
As it is possible we get rejected here to come back down to fill our GAP.
In terms of price getting back into this UPTREND channel (highlighted in my idea below). We would need to see volume maintain above the Black horizontal line i drew out.
Trade closed: target reached
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This short-term sell target has been reached.
Its always important to develop the mindset to take profits when you can.
@Alexandermen, There is confirmation on the Daily timeframe for a rejection at the Red line. Cant really say how far we go but we can test Support around the $60-62 level. Looking at it on the Weekly timeframe, there are signs that momentum can come in to push prices back into the channel. But at the same time we can sell off to the $59-60 level to test Support on 21 EMA on Weekly timeframe. I personally wouldn't take any swing or investment positions at this moment. Longs i would wait if we are confirmed support back inside the channel. Hope that helps. I will be posting a more detailed update once there is more clarity so be sure to tune in by following me or just dm me with any more questions, ill do my best to answer.