SHOP trade ideas
SHOPIFY ($SHOP) Technical Analysis Huge potential buy zones at the end of an ABC correction. Very easy buy zones at 884, 808, and 744.
SHOP was up last week, but ..$SHOP reported strong 1st quarter numbers last week (week 17 of 2021) and finished the week up 7.2% (moving from $1099 to $1182).
The Q1 earnings release was initially met by a strong price movement, which was quickly given back over the following 2 days disappointing most investors.
The 20-week linear regression line is currently at $1196, a minimal uptrend.
But $500 point sell-off after Q4 2020 earnings release (which was followed by a spot secondary offering of $1.55 billion) remains the most dominant price movement over the past 20 weeks or year for SHOP.
It is a volatile stock, and there is no reason to expect that to change. Opportunities to trade options will repeatedly present themselves. The “new normal” in the post COVID economy will still be dominated by e-commerce.
I’m biased towards the bullish side. Worried about a broader pullback in the $NDX. And trying not to react to every $50+ price move in $SHOP.
I intend to add to my $SHOP position with DITM calls (or spreads) if it falls within that lower portion of the VPVR price range as shown ( approx $950 to $1050).
$SHOP if you liked the price yesterday...Then you should really like it today! Glad I exited the calendar yesterday, today looking for a deal somewhere, could be this...
$SHOP well done...Closed a $1,350 calendar spread this mornings for 700%, should have done a same week debit spread as well, but I'll take the profit and move on!
$SHOP no guarantees...But this "could" ramp into close with earnings tomorrow pre-market. Could grab a $1,350 next week call for $3.60, or $1,300 same week for $3.50, day trade and close out no matter what before end of day. Volatility "should" increase into close.
$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 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.
