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SHOP

Shopify - Quite RiskyShopify is an example of where the stock keeps going up ahead of its fundamentals that it has become quite risky even for trading purposes. The risk reward ratio is no longer there to justify to putting large positions here. This is an example where if you bought on the breakout at lower prices, you will get rewarded immensely if you keep holding until now. It is about reducing positions and taking profits. Anyone who all in at this point is rather crazy. What I want from Shopify is for it to cool down, let fundamentals catch up with it and then we will evaluate and see whether there is another possible entry in the future. Not something I want to touch at this point. Can shopify double from here? Maybe. But what is the probability? Given that its Price to Sales ratio is now around 60, Price to Book Value is 30. There are numbers that you don't see unless if you go back to Dot Com bubble. Sooner or later, the price will correct itself. And it may be fearful that most people will be left holding the bags and need to bear the burden of major corrections. Parabola don't last forever, eventually it will end. Investing/Trading is all about risk management and position sizing. Don't message or try to reach me.
SEducation
by UnknownUnicorn735418
SHOP - Shopify Sell BubbleHello traders, Description of the analysis: Shopify selling bubble speculation. About me: Hi, my name is Jacob Kovarik and I´m trading on stock exchange since 2008. I started with a capital of 3000 USD. My first strategy was based on OTM options. (American stock index and their ETF ). I´ve learnt on my path that professional trading is based on two main fundaments which have to complement each other, to make a bussiness attitude profitable. I´ve tried a lot of techniques and many manners how to analyze the market. From basic technical analysis to fundamental analysis of single title. My analytics gradually changed into professional attitude. I work with logical advantages of stock exchange (return of value back to average, volume , expected volatility , advantage of high stop-loss, the breakdown of time in options, statistics and cosistent thorough control of risk). At the moment, my main target is ITM on SPM index. Biggest part of my current bussiness activity comes from e mini futures (NQ, ES). I´m trader of positions. I´m from Czech republic and I take care of a private fund (4 000 000 USD). During my career I´ve earned a lot of valuable experience, such as functionality of strategies and what is more important, control of emotions. Professional trading is, in my opinion, certain kind of mental training and if we are able to control our emotions, accomplishment will show up. I will share with you my analysis and trades on my profile. I wish to all of you successul trades. Jacob
SShort
by Jacob_Kovarik
Shopify: Unusustainable Parabolic Move Analysis 1D, 1W (May 25)X Force Global Analysis: Shopify, a multinational e-commerce platform located in Canada, has shown extremely strong bullish momentum for the past few weeks. In this analysis, we take a purely technical approach, and explore the bearish signs emerging from Shopify's intense bull run. Analysis - On the left hand side, we have the daily chart for Shopify (SHOP) - The first thing we notice is the number of gaps that have been formed on the daily chart - While Shopify has been on a bull run, it has been trading in an extremely choppy trend, forming gaps from $772 down to $367 - This excludes the gaps that have been filled by the candle's wick - Counting Elliott Waves, we see a textbook impulse wave count (12345) - While we are currently completing wave 5, it is hard to confirm whether there is more upside, or whether we have topped out, as this is a record high - The Relative Strength Index (RSI) is extremely overbought on the daily - While the Moving Average Convergence Divergence (MACD) has negated its death cross, the bullish histograms do not demonstrate much momentum either - The envelope indicator demonstrates that we are overextended on the daily, potentially looking for at least a pullback - On the right hand side, we have Shopify's weekly chart - The weekly chart demonstrates a clear parabolic trend - We can spot an extended bearish divergence, in which we see higher highs on the price, and lower highs on the RSI - It's also important to note that the RSI is at overbought regions on the weekly too - Parabolic trends are unsustainable, and even if we were to see a correction down to test the parabolic trend, that would be a 50% move down from current price levels What We Believe While Shopify is a stock that is sound fundamentally, technicals demonstrate clear signs of prices having been overextended and the stock being overbought. Trade Safe.
SShort
by XForceGlobal
Fortinet - Flag on 10smaSoftware companies have really enjoyed the rally year-to-date. Fortinet shocked the market with a triple play in earnings, which resulted in a jump to start the "All-time-high Run" TWLO, SHOP, OKTA, TTD are some examples of stocks with very similar moves, indicating oversold territory in the RSI can stay oversold for longer than you might expect. Also, the 10-day-moving average has been very indicative in these charts. As long as we continue to hold the 10sma, the trend remains bullish.
NASDAQ:FTNTLong
by dorfmanmaster
2
Short SHOP Overbought on low volume. Short 750, Stop 775, Target 1 670, Target 2 590. Shopify has benefitted from an increase in stores on the platform during the pandemic but this short term metric does not justify a longer term price. Yes, it's been necessary for traditional brick and mortar only to migrate to e-commerce but this is priced like those customers are going to be around for the net 20 years, not just implementing an emergency strategy to survive in this extraordinary time. Great first quarter results, and a sound business, but a little too rich at this time.
SShort
by SilverEagle