Daily descending volume + 4h 200EMA Resistance + 1D 100EMA Resistance + 1W 20EMA Resistance
Risk to Reward Ratio: 2.5
The company is trading at around 156 forward PE...
1) I expect a momentaneous recovery in the week. Why? The stock market never goes directly to 0, the price always fluctuates and moves in waves (ups and downs), but the overall trend prevails. Also, sellers will take profits on the way down, causing a small recovery. That being said, I will start adding 15% of my total capital for this trade (Risk Management).
2)...
Shopify has lost 55% since ATH, it´s in a bear trend, broke an important support @880, and still falling with high selling pressure. What do I expect in the next days/weeks? Further drops. My plan? Here´s what I´m gonna do:
1) I expect a momentaneous recovery in the week. Why? The stock market never goes directly to 0, the price always fluctuates, moves in waves...
Mark Minervini´s 4 stage cycle thesis (Stock Price Maturation Cycle). Book: "How to trade like a stock market wizard" - Mike Minervini.
First time publishing any ideas so any correction is always welcome:)
Stage 1 - Base/ Accumulation
Stage 2 - Advancing Phase Price > MA150 y MA200
Stage 3: Top Area (Distribution)
Stage 4: Declining Phase (Capitulation)...
