SHOP is looking vulnerable at the moment, after having formed what looked like an "imperfect" head & shoulders top. Watchout for the neckline which currently at around 900. Bearish if starts breaking below this level.
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance. Thank you.
Look up head and shoulders pattern. It generally is the sign of a reversal. But this has been quite unpredictable, with all of the media stepping in to keep the shares high.
Juliac
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@Jodes2000, indeed. behind all that hype, it appears some "distribution" has been going on since July and the stock has basically been going nowhere.
SidKahn
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What is imperfect Head & Shoulders? tried searching for this in last two days but couldn't find any such definition in trading books. Can you kindly explain it for novice traders?
Juliac
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@SidKahn, I said "imperfect" as the ideal H&S should have a a "peak" in the middle franked by lower peaks on both sides (ie the shoulders). In this case we have 2 left "shoulders" and a "head". But as long as we do not have a clear break below the neckline, then it could still go and form another lower peak (ie right "shoulder") in the coming days, or it may just be consolidating in this wide range and eventually move higher as technically, the chart hasn't confirmed a "downtrend" yet (until we see a decisive close below 900). However, the chart has been showing bearish divergences and is looking vulnerable at the moment.