Hello I am the Cafe Trader.
Today we are going to be looking at Shopify, Thanks to a request from a follower.
Couple things to note here. This is a Massive range for a decent stock.
With a bottom of 23.61, and a high of 176.34 some may wonder if we might see some more downside before testing the highs (rightfully so).
Today we are going to look at some long term prices I think are suitable for your personal risk tolerance. as well as two possible short term scenarios and how you can navigate them.
Enough talking let's get into the charts.
Long Term
These prices are chosen from current market participants. I've measured them in order of your own conviction.
Aggressive = 122 (Top of Demand)
Fair Price = 99-102 (Concentrated demand)
Steal = 70-81 (Top of Strong Buyers)
Short Term
I'm going to be honest here, I don't particularly like the positioning of the range to go long here. That Strong Supply area is still very active, and we may have to hit that concentrated demand before having enough strength to get through that supply.
As this stands though, Bulls are in control. We have that trend break with real buyers, this is looking to hit top of supply in it's current context.
If at all we close above that strong supply (especially on friday) This is a great case to have a continuation.
If we cannot get above this strong supply after a test or two more, this is going to put pressure on the buyers.
Green Scenario
Entry 122
Stop 111.50
1st TP 141
Final TP 145.50
Red Scenario
If bulls make a big push and fail back below the strong supply, Bulls will be trapped, and This will put alot of pressure on the "Top of Demand".
Entry = close of the candle that is the false breakout.
Stop = Depends on how big the wick was on the false breakout. I'll assume about 131.50. but if its a huge wick, it will need to be higher. I'll update this depending.
1st TP = 106
Final = 102.5
That's all for SHOP Stay tuned for updates and more charts!
Happy Trading!
thecafetrader
livelclark
Today we are going to be looking at Shopify, Thanks to a request from a follower.
Couple things to note here. This is a Massive range for a decent stock.
With a bottom of 23.61, and a high of 176.34 some may wonder if we might see some more downside before testing the highs (rightfully so).
Today we are going to look at some long term prices I think are suitable for your personal risk tolerance. as well as two possible short term scenarios and how you can navigate them.
Enough talking let's get into the charts.
Long Term
These prices are chosen from current market participants. I've measured them in order of your own conviction.
Aggressive = 122 (Top of Demand)
Fair Price = 99-102 (Concentrated demand)
Steal = 70-81 (Top of Strong Buyers)
Short Term
I'm going to be honest here, I don't particularly like the positioning of the range to go long here. That Strong Supply area is still very active, and we may have to hit that concentrated demand before having enough strength to get through that supply.
As this stands though, Bulls are in control. We have that trend break with real buyers, this is looking to hit top of supply in it's current context.
If at all we close above that strong supply (especially on friday) This is a great case to have a continuation.
If we cannot get above this strong supply after a test or two more, this is going to put pressure on the buyers.
Green Scenario
Entry 122
Stop 111.50
1st TP 141
Final TP 145.50
Red Scenario
If bulls make a big push and fail back below the strong supply, Bulls will be trapped, and This will put alot of pressure on the "Top of Demand".
Entry = close of the candle that is the false breakout.
Stop = Depends on how big the wick was on the false breakout. I'll assume about 131.50. but if its a huge wick, it will need to be higher. I'll update this depending.
1st TP = 106
Final = 102.5
That's all for SHOP Stay tuned for updates and more charts!
Happy Trading!
thecafetrader
livelclark
Note
SHOP rejected off that supply area again. This could shape into a bearish move. Let's keep an eye on it tomorrowNote
Hitting the top of Demand. This is where buyers need to step up if it's going to keep it's bullish heartbeat.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.