Short term rally for ShopifySHOP has caught my eye.
TA: The price has been consolidating at the bottom of the latest downtrend.
• Heikin Ashi bars are all largely dojis or slightly positive after a strong downtrend, signally a possible reversal.
• Fibonacci retracement levels are all positive.
• EMAS are inside the Fib levels. First resistance would be the 50 EMA and 0.382 Fib
• RSI has been oversold and is now increasing
• MACD histogram has turned green with a positive crossover of the MACD / Signal line
Target 1: First resistance would be the 50 EMA and .382 Fib between $545 - $550
Target 2: If the 50 EMA is flipped the next resistance level is the 100 EMA and .618 Fib between $625 - $645
The newly found positive moment may start to flip the remaining EMAS with the 50 and 100 crossing the 200, which would be a full trend reversal.
The stock market sentiment is still bearish for now, so we might just see the first 2 targets.
FA: Shopify will release earnings report on Thursday 5th May before market open.
Tradingview has the EPS estimate @ $0.64 with a Rev of $1.24B
Earnings whispers has the EPS estimate @ $0.97 with a Rev of $1.25B with a 26% Expected revenue growth.
Potentially a beat on EPS and good growth will be a good catalyst.
Buying today when market opens.
