Chart of the Week: Shopify
Shopify, symbol SHOP.
As you can see here I’m putting together a trend line that the stock broke back in the early part of November – a nice break higher on better volume. We can see that, according to the go-no-go indicators, the candlesticks have moved in early November from pink to amber to teal, up into blue, and we’re still in the blue and teal colors as we move into the end of the year.
What does that mean? The blue colors indicate strongly bullish. The teal colors are cautiously bullish, so we’re pretty much in the strong bullish camp over here.
We broke that level with better volume in the early part of November, so that is a bold move. Regardless of what the secondary indicators are telling us, it’s the primary indicators – volume and price – that really matter the most, and they’re telling us that we’re on a buy signal. We could be stalling out a little bit in the mid to high $70s right now.
We see the indicator here at the bottom, the TDI, which is the Trader’s Dynamic Index, which basically tells us how relative strength is doing versus bollinger bands – that is on a buy signal.
Chaikin money flow has been strong, and the MACD is on a buy signal, too. It’s crossing over for a corrective move at a higher level – but that’s OK. We still like this indicator to move substantially higher.
We have good volume. We have good movement on the price action here on Shopify. There is room to move up. We think this stock moves up towards a $100 over the long-term.
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