SHOP - accumulation opportunityNYSE:SHOP has had an incredible year and we may have another strong accumulation opportunity in front of us. SHOP has been in a strong uptrend since recovering its 200MA in January. We the December 2022 low and an overbought condition in February 2023 set a range for the measured move of the gap up on May earnings.
The May gap came close to closing during the August drawdown, but support held at the VWAP from the December 2022 low.
I'm skeptical that the most recent gap up is an exhaustion gap that will fill quickly (note the low volume). If this gap closes and recovers the pattern may resemble a cup and handle.
Also note the following:
A fib timezone from July 2022 earnings to October 2022 earnings aligning to key pivot points.
The red VWAP from all time high converging with the 200SMA and the VWAP from the December 2022 low
Blue VWAPs from the May gap up, July high, and August low
Game plan
Entry 1 ~61, above the August gap open and aligning to the VWAPs from the May gap and July high
Entry 2 ~58, aligning with the top of the August gap open and the VWAP from the August low
TP 1 ~67 which would likely conclude the formation of a cup and handle
TP2 ~71 top of the measured move from the August gap and a higher high below a fib extension
SL ~56-57
Re-entry - If I'm stopped out I will likely re-enter ~50-52 on a retest of the red and green VWAP and 200SMA
