Shopify (SHOP) - Analysis for NYSE:SHOP by hutsell_andrew

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trendanalysis chartpattern shopify shop triplebottom

Shopify has been consolidating in a trading range since mid summer. Long periods of consolidation following a prior uptrend typically set this stage for a stock to make new highs when it exits the trading range.

Establish a 25-30% position in the stock and see if it can break out. Double up the position on a close above 1100, and top it off once it reaches a new all time high. Then sit back and let it run :)

Comments

Not much buying volume happening, every rally after each bottom has weaker buying volume than the last

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donthavename123

@donthavename123, I don't put as much of an emphasis on volume as others but I hear your point. The stock has consistently failed at this upper level of resistance, but it's back to try again, which is why I advise starting with a 25-30% position and only scaling up on confirmation that it gets through resistance.

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