In today’s edition of the Daily Stock Report, we are going to take a look at Shopify Inc. (SHOP.TO). Shopify Inc. offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: Subscription Solutions and Merchant Solutions.
We last looked at Shopify Inc. on the June 17, 2021 edition of the Daily Stock Report when the shares rallied out of the Red Zone into the Yellow Neutral Zone of the SIA S&P/TSX 60 Index Report with a price of $1670.47. Since then the shares have continued to remain strong and now reside in the Green Favored Zone of the SIA/TSX 60 Index Report at the 10th spot. With Friday’s closing price of $1874.65 this represents a 12.2% increase since we last commented on it.
In looking at the Candlestick chart, we see that the shares peaked at the $2075.00 area and have pulled back somewhat. Support can now be found at the $1800 round number. It will be interesting to see going forward if the shares can hold this support level or if they can continue their upward trajectory and regain the $2075.00 area which will now act as major resistance. Minor resistance can be found on the way back up just below the $2000 round number.
In the attached Point and Figure Chart at a 2% Scale, we see the shares are quickly approaching a support level at $1847.08. If it does not hold here, the next level of support is at $1640.15. To the upside, resistance is at $2039.32 which acts as the 3 box reversal point. With a SMAX of 9 out of 10, Shopify Inc is still exhibiting near term strength against all the asset classes.
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