Shopify Inc. provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally.
Take a look at the 1-year chart of Shopify (NYSE: SHOP) below with added notations:
SHOP has runup against the $210 as resistance twice since mind-March. That level is also the barrier to a new 52-week high. SHOP is currently rallying back towards that $210 mark again, and a solid close above that resistance should lead to another leg higher for the stock.
The Tale of the Tape: SHOP has a 52-week resistance at $210. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT