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.
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