Shopify (SHOP/USD) was trading over 6% higher as it saw a strong gap up opening which is suggesting that the bulls are back in Shopify. Shopify saw a gap up of over 3% which is indicating that the Shopify correction could be over.
After hitting a new all-time high in November Shopify started its correction and fell from $1690 to $1381, thus investors who missed the previous rally are now looking for opportunities to enter Shopify. This could be a great time to enter Shopify as it could soon start a rally to hit a new all-time high.
However is this the correct time to enter Shopify?
Here is what the charts are pointing towards-
Shopify has formed a wedge and has been in a strong uptrend this year, it also tested the trendline earlier this week however a false breakdown was seen which is a very bullish indicator for Shopify.Shopify has formed strong candles at the supporting trendline which is suggesting towards a strong reversal.This could be the start of a rally, thus investors can take long entries after a small pullback so that the rally is not missed.With the momentum that Shopify is showing it is looking like a new all-time could be seen very soon.A breakout from the wedge that Shopify has been trading under this year could also be seen, which could yield high returns.Shopify has taken support from the 200-day moving average and has also broken through the 50-day moving average, this is suggesting that the buyers are back in Shopify and that it could be the start of a bullish rally.Investors can set a target at $1790, however, investors must be cautious of the resisting trendline as it could cause a rejection in the price.A stop-loss can be maintained at $1340.
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