Overbought on low volume.
Short 750, Stop 775, Target 1 670, Target 2 590.
Shopify has benefitted from an increase in stores on the platform during the pandemic but this short term metric does not justify a longer term price. Yes, it's been necessary for traditional brick and mortar only to migrate to e-commerce but this is priced like those customers are...
Rejected off upper 2SD Bollinger Band and all time high to close yesterday with hanging man formation at pre-pandemic price. Daily RSI coming off overbought and MACD crossing. P/E ratio above 78. Risk/reward certainly favors the downside, retreating into the volume value area.
Lowe's hardware store, overextended bounce on low volume, now rejecting off longer term trend line and heading back to value area. First target 104.5, then breaking below trendline to find temporary support at 82.
Online/tech businesses have fared better than brick/mortar but the spread between the Nasdaq and SP500 indices has overextended and rejected off a long term trend line. Recommend short NQ futures and long ES futures contracts in equal number.
