Shopify Inc. - (SHOP.TO) - June 17, 2021
A new ecommerce deal with Google and Facebook has reignited interest in Shopify (SHOP.TO). The stock has rallied up out of the red zone into the Yellow Neutral Zone in the SIA S&P/TSX 60 Index Report this week on the news. Yesterday, the shares finished in 25th place, up 18 spots on the day and up 37 spots in the last month.
A significant breakout is underway in Shopify (SHOP.TO) shares. Last month, a downswing in the shares was contained by an underlying longer-term uptrend support line. Since then, the shares have been recovering and this week, the shares cleared $1,600 on an uptick in volume, indicating renewed accumulation and confirming the start of a new upswing.
Initial upside resistance appears at the March peak near $1,850, followed on trend by a measured $1,950 and then the $2,000 round number. Initial support appears near the $1,600 breakout point.
Since peaking back in March, Shopify (SHOP.TO) shares had been in retreat, but recent trading suggests that the previous downtrend has ended and the shares have come under renewed accumulation.
The recent breakout over $1,610 completed a bullish Double Top, calling off the bearish spread double bottom pattern that had previously been active. Currently the shares are bumping up against a previous column high near $1,675 where a breakout would confirm the start of a new upswing. Should that occur, next potential resistance may appear in the $1,845 to $1,885 zone where multiple vertical and horizontal counts cluster with the March peak, then the $2,000 round number. Initial support appears near $1,515 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, SHOP.TO is exhibiting strength against 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.