Why I'm Going Long on Shopify

On the weekly timeframe for SHOP , I noticed four things immediately:

- A candle close above the bullish flag forming, indicator bullish momentum.
- SHOP recently created swing highs at $53.70 and then broke it and bounced perfectly off of it showing that $53.70 is a KEY level.
- When price bounced off of $53.70, it was also at the 5 SMA, adding more confluence to my trade
- Lastly, I saw a divergence on the volume indicator, which is always a good sign of confluence for my trades.

Given these four reasons, I am bullish on SHOP as of now.


Stop Loss / Take Profits
Stop loss:
The stop loss of this trade is set at $55.42, which is the most recent low.

Take Profits:
All of these take profits are set at levels that I felt were phycological levels.
My plan would be to scale out half of my position at TP1, 1/2 of the remaining position at TP2, and fully out at TP3

If TP3 is hit, this will be a 1:1.44 R:R trade.

Let me know what you think of this trade!

Comment:

TP1 hit. Stopped at breakeven after.