SIACharts Logo

Commentary >

Shopify Inc (SHOP.TO) - March 24, 2023

When we last looked at Shopify (SHOP.TO) in the February 22d issue of the Daily Stock Report, its shares were under pressure following a disappointing earnings report. Relative strength continued to weaken afterward and the shares dipped down into the red zone of the SIA S&P/TSX 60 Index Report. In recent weeks, however, the shares have rebounded and returned to the Green Favored Zone for the first time since early February.

Shopify has moved up 23 positions in the last month, including a gain of 2 spots yesterday, and it is currently in 7th place.

A recent selloff in Shopify (SHOP.TO) shares was successfully contained by an uptrend support line near the 50-day moving average. Since then, Shopify has resumed its upward course with a bullish Rising Channel still intact. The shares have regained $60.00 which reverses polarity to become initial support. Upside resistance appears near $72.00 then closer to $90.00 on trend based on a combination of previous highs and measured moves.

The decline seen in Shopify (SHOP.TO) earlier this month appears to have run its course with the shares attracting support at a higher low and holding above an uptrend support line. SHOP.TO has moved back into a column of Xs and is currently about $0.80 away from triggering a bullish low pole warning which needs a close above $63.40. Initial upside resistance appears at the February high near $72.80, followed by a round number and downtrend test in the $75.00 to $75.50 area. Initial support currently appears near $57.40 based on a 3-box reversal.

With its bullish SMAX score increasing to a perfect 10, SHOP.TO is exhibiting strength across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.