Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Shopify Stock Shatters Expectations: What You Need to Know About Its Rise

by November 3, 2023
November 3, 2023
Shopify Stock Shatters Expectations: What You Need to Know About Its Rise

Shopify (SHOP) share value jumped by over 20% Thursday morning after stunning analysts with a sharp earnings beat and rosy guidance. The stock reached the top of the StockCharts Technical Rank report in the Large Cap, Top Up category.

CHART 1: SHOPIFY STOCK SAW THE LARGEST SCTR RISE ON NOVEMBER 3, 2023. Chart source: StockCharts.com. For educational purposes.

Despite a 35% fall from its 2023 high of $71.43, its comeback suggests that the e-commerce industry is still kicking.

Can SHOP sustain this upward momentum? Where might an effective entry point be, and what headwinds lie above the current price? Let’s take a closer look, starting with the monthly chart.

CHART 2. MONTHLY CHART OF SHOP. As the stock attempts to reverse, note how the dwindling volume coincides with a drying-up of selling activity. Chart source: StockCharts.com. For educational purposes.

Looking back on a monthly scale, you can see SHOP’s plunge. The end of 2022 saw SHOP’s bearish capitulation leading to a rally and a near-term drop. While volume receded significantly since the middle of 2022, so too did the selling pressure, as shown by the Chaikin Money Flow (CMF).

On the weekly chart below, you can see that SHOP formed a Head and Shoulders Bottom pattern from the middle to the end of last year.

CHART 3. WEEKLY CHART OF SHOP. The head & shoulders bottom pattern that formed toward the end of last year painted a bullish picture of SHOP’s recovery. Chart source: StockCharts.com. For educational purposes.

Many traders use the head & shoulders pattern daily to make tactical decisions. On a weekly scale, the pattern indicates longer-term trend shifts, often reflecting broader fundamental factors. And in this case, the indication is bullish.  Note that SHOP prices have been hovering resiliently over the neckline level of $45 since January 2023.

CHART 4. DAILY CHART OF SHOP. Planning your trade around support and resistance is critical. Plus, be aware that breakaway gaps often don’t get filled. Chart source: StockCharts.com. For educational purposes.

SHOP’s surge came in the form of a breakaway gap—in this case, a gap up from a near-term downtrend. Breakaway gaps have a low fill rate. And while this would tempt some traders to go long now, it helps to see the bigger context. The relative strength index (RSI) is rising, and though it’s approaching the 70 level, it might also just reflect the magnitude of today’s post-earnings jump. 

Eventually, SHOP may come across historical resistance levels at $67 and $71.50. Until then, there’s strong support at $50.50 and, below that, $45.50.

The Bottom Line

If you were bullish on SHOP leading up to Thursday’s earnings, you might have entered a position immediately upon market open. Again, breakaway gaps don’t often get filled, especially in the week of the gap, but there’s never any guarantee. 

Keep your eye on Shopify stock as investors assess whether there’s enough fundamental fuel to justify the technical break. Whether you’re already long the stock or planning to enter a position soon, set an alert at support and/or resistance depending on your strategy. 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
United Nations allowing Hamas to ‘literally get away with murder,’ expert says
next post
Lawmakers Seek To Overrule Cops’ Medical Decision and Follow the Advice of Addiction Doctors

You may also like

Oversold Bounce

September 9, 2022

5.31-Year Cycle in CPI Inflation Rate

August 18, 2022

MEM TV: The Easy Way to Uncover Stocks...

January 13, 2024

RRG-Velocity jumping on XLF tail

August 23, 2024

Top Ten Charts for August: Two Magnificent 7...

August 19, 2024

Why this Hated Bull Market Keeps Rising; QQQ...

July 30, 2023

DP Trading Room: Tariffs Narrowing, Sparks Market Rally

March 25, 2025

I Say We’re Setting Up For A Major...

September 24, 2023

What Happened to NVIDIA (NVDA)?

March 8, 2024

Cybersecurity ETF Comes to Life with New Trending...

October 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rand Paul says he would support ‘big, beautiful bill’ if debt ceiling hike removed

      June 1, 2025
    • Kevin Hassett ‘very, very confident’ courts will back Trump’s tariffs amid legal setback

      June 1, 2025
    • Senate Republicans eye changes to Trump’s megabill after House win

      June 1, 2025
    • Trump shares post saying Biden was executed, replaced with clones

      June 1, 2025
    • House Dems’ campaign chair says her party’s ‘on offense’ in 2026 battle to win back majority from GOP

      June 1, 2025
    • Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

      June 1, 2025

    Categories

    • Business (8,105)
    • Investing (2,000)
    • Politics (15,458)
    • Stocks (3,119)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved