Shopify: Will Santa Come to Town?The fourth quarter has begun, and attention may soon turn to holiday spending and Black Friday. Today’s chart focuses on Shopify, a key player in the growing world of online commerce.
The first pattern is the August low of $51.20. SHOP has flirted with this level for almost two weeks without closing below it. Is support in place?
Second, the consolidation has occurred around the rising 200-day simple moving average. That may suggest a longer-term uptrend is underway.
Third, the MACD histogram has been growing less negative. Traders may watch for a potential flip back to positive.
Next is the short-term falling trendline along the highs of September 29 and October 6. A close above that resistance could potentially draw buyers from the sidelines.
Finally, SHOP has had some potentially positive fundamental events like strong earnings and an integration with Amazon Prime on August 31. Instacart also added a new connection last month.
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