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- 1 Shopify price closed at $60.20 while witnessing a decrease of -1.07% during the last intraday session.
- 2 Shop price traded above all the major EMAs – 20,50,100, and 200-Day.
- 3 The year-to-date return of Shopify is 68.67% suppressing the returns of the S&P 500, which is 9.18%.
Shopify price finally made a bullish move to shatter the $54 resistance level. Investors have been waiting for the current action since the start of February. Although, the bullish rally for Shopify began at the start of 2023 when price rose from the low of $34.65.
The move gave investors a return of approximately 56% in a month and created a high of $54.67. The shop price tried to break above the resistance level of $54 but was unsuccessful. The bears corrected the move, and the price melted down to form a support at $39.
Shopify started to rise from the support and performed the significant move of breaking the resistance level of $54. The Shop price has been rejected at $64.50 and began to decline to form support at $60. The price is on the verge of shattering the recent support.
Shopify Amidst Quarterly Report And Lay-Offs
Shopify beats the quarterly revenue estimates providing the much-needed bullish momentum to the price. Shop price upsurge 8% in trading even before the bell. Consensus estimated the revenue to be $1.43 Billion, which turned out to be 1.51 Billion.
Shopify reported a negative net income in the last quarter, while for the first quarter of 2023, it turned out to be $68 Million. Analysts estimated the earning per share to be -0.04, but it turned out to be 0.01, a surprise of 124.89%.
Shopify is also headed toward the second round of mass layoffs. The e-commerce platform has already laid off 1000 employees last year. The founder and chief executive of Shopify, Tobi Lutke, stated that layoffs are necessary for the company as consumers have resumed old shopping habits and have withdrawn from online shopping.
Will Shop Price Retest the $54 level?
Currently, Shopify price is headed toward the wrecked resistance of $54. The stock price still trades above all the significant EMAs. Chaikin money flow score dropped to 0.12 from 0.24 as the price began to fall, indicating bears are slowly entering the market.
RSI trades at 64.98 after residing in the overbought zone from 4 May, which has initiated the possibility of a reversal in the price.
Shop price is currently headed toward the lower band of Bollinger and might form support near the 20-day SMA. The bullish momentum is high, and the current move can be seen as a short-term pullback for the price to continue moving upwards.
Conclusion
The market structure and price action are highly bullish for Shopify’s price, and the price can retrace back to the $54 level before moving further upwards.
Technical Levels
Major support: $54 and $44
Major resistance: $64.50 and $72
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
