Shopify is back at the support of its ‘good old friends’, the 85-week SMA and the 88-week SMA duo.
After the last encounter in May, SHOP rose and traded up until it hit its resistance lines, the 21-week SMA and the 23-week SMA. Then it lost its mojo and quickly came back to its support area again:
Shopify may turn up again from this point, as it has done in the past several times. However, if it ends up breaking support – yep, that happens too – then its next support area is defined by its 339-week EMA and 345-week EMA lines, around $50-$51.
The following chart shows the result of the most recent MA support and resistance calculations:
Frequent visits to the support area should place market participants on alert mode.