Shopify (SHOP) Stock: Will Double Bottom Elevate The Price?

• Shopify is scheduled to announce its Q3-23 consensus on October 26, 2023.
• SHOP stock has lost 19.02% over the past month.
• SHOP stock closed at $54.00, with a loss of 1.04% in the past 24 hours.

Shopify (SHOP) stock closed at $54 while witnessing a loss of 1.04% in the last intraday session. The stock price has spiked about 8% after forming a solid support level at $50.59. Hence, the price action shows a retracement in the current scenario.

However, the sudden increase of bulls has elevated the price. But to sustain a bullish trend, Shopify has to attract more buyers in the long run. Moreover, SHOP stock price reflects a double bottom formation, encouraging buyers to pump the capital into it. 

On the higher time frame, it achieved an annual high of $71.43 on July 14, 2023. The bears’ participation erupted with accumulation, which caused a drop of 27% within a month. Thus, the price fell towards the $51.20 support level. 

Furthermore, SHOP stock price bounced back to retest the previous resistance level of $70.60 after forming strong support at $51.20. But the bulls failed to retest that and halted at the $66.90 resistance level. Due to the heavy presence of bears, the stock has lost 19.02% over the past month and halted at the previous support level of $51.20.

Hence, the SHOP stock formed a double bottom pattern, with a top and bottom at $66.90 and $51.20, respectively. Recently, the price action suggested that if the price bounce intends to retest the 66.90 resistance level, the price might at least retest the $59.50 mark. On the contrary, if the price fails the above scenario, then the price might melt and retest the previous support level of $46.40.

Shopify Scheduled to Announce its Q3-23 Consensus in October

Shopify will release its 3rd quarter financial report on October 26, 2023. For the Q3 report, analysts expect Shopify to display an EPS of $0.08, according to the Zacks Consensus estimate. Meanwhile, the revenue estimated forecast is projected to be $1.64 Billion.

Technical Analysis of Shopify on 1-D Timeframe

Shopify (NYSE: SHOP) stock price is hovering above the 20, 50, 100, and 200-day EMAs. However, the stock price is contesting for the 200-day EMA, indicating predicted bullish momentum but the current scenario suggests a strong presence of sellers in the market.

The Relative Strength Index (RSI) trades below the 50-neutral mark, and the CMF is below the 0.00 score. Thus, SHOP stock price is facing solid weakness during the intraday session. Furthermore, the price is heading towards the oversold zone. 

Conclusion

Shopify, a cloud-based e-commerce company, has lost 19.02% over the past month and is facing a retracement. However, the positive year-to-date return of 51.30%, +124.89% EPS surprise in the first quarter, and +117.81% EPS surprise in 2nd quarter shows the yearly growth story of SHOP stock.

Technical Levels

Major resistance: $71.43 and $67.60

Major support: $35.67 and $39.02

Disclaimer

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