[ Jump to the 2023-06-25 update ]
Shopify Just broke its best respected moving average resistance lines, the 85-week SMA (body) and the 88-week SMA (wick), which registered in January 2022.
These resistance lines feature negative slopes and SHOP has been teasing both in the last few weeks.
Before it moved to entertain the resistance lines, SHOP has been riding its best respected moving average support lines, the 21-week SMA (body) and 23-week SMA (wick).
If that setup looks familiar, it is because we featured a similar setup with Netflix on May 14th, 2023.
The resemblance is uncanny. After Netflix broke above its best respected moving average resistance lines, it flew up powerfully for 4 weeks (as of this writing).
If Shopify’s stock, SHOP, is setting up the same way as Netflix’s stock, NFLX, did, it may copycat the post-break price action.
The FOMC is scheduled to announce its interest rate decision this week. The decision will have an impact on SHOP’s price action. If we’re looking through a window that is set to have SHOP mimic NFLX with a large green candle this week, then it may provide us with a clue on the upcoming FOMC decision.
2023-06-25 Update
SHOP closed the last trading week above the resistance lines it previously broke above. So far, so good, setup is still valid to follow Netflix price action.
