Here’s your trade in Shopify ($SHOP) – December 13, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. Today I want to look at Shopify ( NYSE: SHOP ).This stock has been in consolidation for a while, since it last reported earnings, I think, on the 27th. The stock really popped up here and had a high close, it didn’t pull back. After all this move up into earnings, 60 percent, the company reports, and it doesn’t shoot up anymore, thank the good Lord for that, but it did hold its ground.
And so then, we look at the weekly chart and you can see this still has a long way to go to prior highs. We don’t care too much about that. What we care about is, what’s the next move. I think the next move is, actually, higher. That is just the way the market seems to be going.
As long as this stays below 75.00 I wouldn’t buy it here. It’s not like you are going to get that much of a jump, percentage-wise, on a breakout. If you say, “Oh, I’m going to buy it here, I’ll make $.78 more, big deal.
Wait for the break out on the upside. Or if the stock happens to pull back to 71.00 and then shows you that that level will hold. In other words, it is not going to fall back below here. Then that’s the time when you can start building a position on this little pullback. The thing that is important to note is this green line here, this is the volume-weighted average price.
I started this on the day that the company reported earnings so that I could see where, generally speaking, the buying is above or below where the volume-weighted average price is. Like, where is most of the volume? It has been a little bit all across the board.
Today was the first time that the stock really came and blew through the VWAP, this anchored VWAP, and on heavier than average volume. I like the way this stock is trading. If you are long the stock I would say, just stay long and keep your stop a little bit down below here. Otherwise, wait for the breakout.
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