$SHOP example earnings play...4/30 - 5/7 $1,300 calendar call spread for $1.50. Give yourself plenty of time post earnings to get a move...if it runs up before earnings, could just sell for a good profit...
SHOP trade ideas
SHOP back to ATH by May- Why?
- Cup pattern
- Earnings catalyst on Apr 28th
- QQQ recovery
If that holds, 21 May, 1310 Calls ideal.
SHOP:Head & Shoulders (with a bearish flag on the shorter term)Id initiate a short/bearish position if it breaks that support (black) come next week, the stocks trading at an ATH, Zacks says it has an insane trailing-twelve-months P/E of 277.63X, comapred to the industry's 30x. The head and shoulders is a red flag, and a bearish flag can be drawn easily, with the line to the right shoulder from the head being the flagpole. A death cross just occured too (the 25 day MA slid under the 100 day MA). While I dont usually use MACD, it slid under the signal line too. So many bearish flags..
Tell me what you think, like to spread the message, itd mean a lot :)
AMA and Ill def respond
SHOP Pre-Earnings SelloffSimilar action has been seen in shop since July with selling before earnings which presumptively can be accredited to profit taking. The only exception would be February where there was a huge run up in price before the report, a flop in earnings created a large selloff. With board members stepping down, there is some uncertainty around SHOP and the looming earnings report makes for a lot more suspense. Current price action would suggest that under 1076 is discount pricing, though that is subject to change if there is sub par reporting next Friday. Month over month shows only a 1% increase in shares short (now 1,800,000) making up only 1.6% of the shares outstanding. To add to that, a P/C ratio of .57 would suggest that the outlook is more bullish.
$Shop should breakout of the downtrend line to see upside$Shop should breakout of the downtrend line to see upside
SHOP could continue correcting Shop could go lower. Home plays are losing their shine. Also, the very high expectations are already baked in- 46 P/S. My EW count suggests a good chance of going down in a C wave. All these make me inclined to think that there are more chances to go down rather up. An invalidation point could be at around 1250.
$SHOP time to YOLO, Bottom is in$SHOP hit the big up supply on daily and time explode to the upside. BUY CALLS, GO ALL IN.
SHOP - going down ?1) H & S formation
2) RSI and MACD about to trend south
3) News around company execs leaving
TPI: 1100
TP2 : 1040
$SHOP at key supportShop at 1180 key support and the same level is middle peak of W
Continue to be long here as long as 1180 holds
SHOP trying to break 50% Fib RetracementShopify made two unsuccessful runs at the 50% Fibonacci line this past week.
Little reason to doubt it won't try to break through at least once more prior to earnings April 28.
$495 sell-off in Feb March has many doomsayers calling for a bigger sell-off and perhaps an overall revaluation of this high growth ecommerce stock.
They may be right ... but I'm looking for more run out of this recent rally. And maybe a bigger upside move.
Post earnings price movement is completely unpredictable. Study the recent ER and specifically the days immediately preceding.
I masked the pivot points, because they make the chart too crowded, but they approximate the target prices shown.
$SHOP will it retrace to $1300 before earnings?
SHOP hit significant support close to $1000 and reversed to retrace —strong momentum with a lot of buyer's interest could drive the price above $1250 and potentially reached $1300 by next week. The price needs to stay above the orange trendline. The last two candles look like a bearish Hirami. If it goes below the dotted line, it could see $1150.
SHOP Alert set at 1190SHOP has been on a bit of a roller coaster ride. First breaking out of a long term base then pulling back into the base on 400 point round trip. It's a long term hold for me but I like to trade around my core position because of the volatility. If price can break the 1190 level a move to 1290 is possible in a short period of time.
Additional Info:
I am an intraday scalper and short term swing trader of stocks & Futures using options and equity.
I focus on high volume momentum stocks in strong uptrends.
My time frame is between 5minutes to 5 days on most trades.
I scale into positions and scale out of positions as my targets are hit.
I always trail my stops after T1 is hit to reduce risk and lock in gains.
If my post is on a Weekly/Daily/240M chart the idea is a swing trade.
If my post is on a 60M chart or lower the idea is a day trade.
Day trades can turn into swing trades if the stock is strong.
All trades should be supported by market direction.
Treat my posts as trade ideas and not signals.
Traders must trade using their own back tested trade plan and rules.
Traders must plan risk first and profits second.
Additional Additional Info:
If you use options to trade high IV stocks it is crucial to wait for some consolidation or a pull back.
If you buy an option when price is stretched you will find that even when the instrument trades in your
direction you will lose money because you will have paid too much premium.
Simple rule = BUY options when candles are SMALL and SELL options when candles are BIG.
SHOP jaws are opening on alligatorDebit call spread might be a good idea here (bracket 1250 or 1270, perhaps June).
NDX and earnings optimism will be the key drivers for the next 2 weeks.
Continue to believe the pivot points make sense.
SHOP S&R Strong Bid Off Swing LowShop dropped all the way to 1006.21 when the market plunged in March. Since correcting 32% from its all time high, SHOP has been strong as the tech led rally continues. Its earnings are coming up this month and it has showed strength throughout April. It is also trading right above its January range which should serve as a strong support.
