Shopify -
SHOP
Shopify is having a great year and it appears it just got better, they announced a record-breaking Black Friday, with global sales from its merchants totaling $4.1 billion. Surpassing the previous year's figures, sales saw a substantial 22% increase, peaking at an impressive $4.2 million per minute on November 24, 2023.
After 5 positive quarterly earnings in a row and with the annual earnings release in Feb 2024 around the corner, now could be a time to capitalize on this upcoming likely positive Annual Earnings Report release in Feb 2024 (released between 14th – 21st Feb).
The Chart
There is a clear long term diagonal support level under price and potential break out above key resistance level of $70.00.
We are above the 200 day smooth moving average and it is sloping upwards.
Entry into the trade should to your desired risk tolerance. Some examples of how you could enter
- Entry here allowing for potential loss of 15% (the stop)
- Entry at the $70.00 resistance line level (keeping stop at $62.00)
- Entry off a the 200 day SMA when ever that occurs and place a stop under the diagonal
resistance line (which will like be a similar 15% potential loss).
The Risk: Reward is decent at 6, however I would take a significant portion off the table at $91.00 (the 0.618 fib level) or I would at lease raise my stop at this juncture, as it will likely be some form of resistance simply because of the price support/resistance you will see to the left historically and also because it lines up nicely with the 0.618 fib extension.
You could also exit the trade entirely at $91.00 and plan a re-entry when we see what happens next. Its only a 22% play here versus a 15% loss, not great. So you need to weigh up what your comfortable with.
There is also an argument to hold the position until the annual earnings release in Feb 2024, in this case the position size is key and should be smaller, with capital set aside to average in if we re-visit the 200 or diagonal resistance.
There is a trade here and a structure to play off, its up to you how you do it. Carefully select your position size if your making a longer term play, regardless position size should be small with a potential 15% loss.
Another alternative is to cut the stop loss to 5%, however I would only do this after a significant pull back of some sort.
An interesting year for Shopify, it appears the US consumer is stronger than market commentators might think.
As always stay nimble
PUKA
SHOP
Shopify is having a great year and it appears it just got better, they announced a record-breaking Black Friday, with global sales from its merchants totaling $4.1 billion. Surpassing the previous year's figures, sales saw a substantial 22% increase, peaking at an impressive $4.2 million per minute on November 24, 2023.
After 5 positive quarterly earnings in a row and with the annual earnings release in Feb 2024 around the corner, now could be a time to capitalize on this upcoming likely positive Annual Earnings Report release in Feb 2024 (released between 14th – 21st Feb).
The Chart
There is a clear long term diagonal support level under price and potential break out above key resistance level of $70.00.
We are above the 200 day smooth moving average and it is sloping upwards.
Entry into the trade should to your desired risk tolerance. Some examples of how you could enter
- Entry here allowing for potential loss of 15% (the stop)
- Entry at the $70.00 resistance line level (keeping stop at $62.00)
- Entry off a the 200 day SMA when ever that occurs and place a stop under the diagonal
resistance line (which will like be a similar 15% potential loss).
The Risk: Reward is decent at 6, however I would take a significant portion off the table at $91.00 (the 0.618 fib level) or I would at lease raise my stop at this juncture, as it will likely be some form of resistance simply because of the price support/resistance you will see to the left historically and also because it lines up nicely with the 0.618 fib extension.
You could also exit the trade entirely at $91.00 and plan a re-entry when we see what happens next. Its only a 22% play here versus a 15% loss, not great. So you need to weigh up what your comfortable with.
There is also an argument to hold the position until the annual earnings release in Feb 2024, in this case the position size is key and should be smaller, with capital set aside to average in if we re-visit the 200 or diagonal resistance.
There is a trade here and a structure to play off, its up to you how you do it. Carefully select your position size if your making a longer term play, regardless position size should be small with a potential 15% loss.
Another alternative is to cut the stop loss to 5%, however I would only do this after a significant pull back of some sort.
An interesting year for Shopify, it appears the US consumer is stronger than market commentators might think.
As always stay nimble
PUKA