Shopify crashes, pulverized into dust. SHOP collapses from 1763 in November to 308 about 3 weeks ago still stumbling around at 375. It is a -83% crash. Traders holding SHOP long lost their shirts. The 20-day MA is 373 so price is trying to poke above to get a rally started. The daily chart shows universal positive divergence that bounced price a couple weeks ago. There is no reason for price to come back down again since all the indicators were possie d but price does slump over after being rejected at the 20-day.
Price does not make a lower low, there was no reason it should considering it is all fueled-up to go higher. The daily chart looks good for more upside perhaps targeting the 50-day MA at 510 and dropping. The falling wedge patterns are bullish.
The weekly chart shows the Tweezer Bottom (blue circle) that typically forecasts a bottom in place (or top if it is a Tweezer Top). The indicators are universally possie d (green lines) which forms a beautiful upside tapestry with the daily chart. The only thing that can likely stop SHOP form rallying in both the daily and weekly time frames is negative news hitting the wires.
On the daily, when price was rejected at the 20 and came back down to the low 4 days ago, not making a lower low, was likely due more to external bad news and not company-specific. A move above the 20-day MA at 373 would be a big deal and a move above the 4 hundo price resistance would be a bigger and more positive signal.
The charts are encouraging and bullish but SHOP is a speculative name. Keystone bot SHOP a couple weeks ago and is holding it on the long side, watching the trade closely, and not married to it. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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