Technical Pulse: Shopify Inc April 22, 2020 427

Shopify Inc (US: SHOP) may end its strong bullish upside after the stock prices show signs of a strong reversal based on the technicals.

  1. The stock has completed its 5-wave strong impulse move on the cycle phase. Currently, the stock is forming an expanding flat corrective wave with wave A and B being completed.
  2. Current price action suggest that the bearish engulfing candle has rejected nicely off the 123.6% level of wave A, confirming the end of wave B.
  3. Wave C will see a strong 5 sub-wave down towards the base of wave A.
  4. Relative Strength index shows a strong RSI Bearish Divergence and an overbought signal above the 60 overbought level.


*The technical call is valid for 3 weeks only.



Simple moving average

Red line = 200 SMA Line

Blue line = 50 SMA Line

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