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- 1 Shopify stock may reach the $71 mark as the deal with AMZN ignites its stock price by more than 10%.
- 2 SHOP stock is currently trending above the 20, 50, 100, and 200-day moving averages.
- 3 Shopify Inc. (NYSE: SHOP) tied a deal with Amazon.
Shopify stock price shot up and gained more than 10% after SHOP and AMZN partnership news came out. Shopify and Amazon made a deal regarding the Buy with Prime system to the merchant. According to the deal, Shopify merchants can access Amazon’s ‘Buy with Prime’ feature.
However, with this deal, merchants get benefits like Amazon’s quick turnaround delivery and adding the Prime logo in front of their store. The service will be rolled out by the end of September.
At press time, SHOP was trading at $66.49 with an intraday gain of 10.80%, showing extreme bullishness. Moreover, the 24-hour trading volume is $30.506 Million which was 3 times the average trading volume of 10 days; 11.314 Million indicating a volume surge.
Nevertheless, the market cap of SHOP is $85.292 Billion. The day high of Shopify is $66.85, and the day low is $63.28 which indicates buyers’ dominance. The stock price opens at $64.71 and closes at $66.49 with a total change of +10.80% showing the Shopify and Amazon deal flips the market sentiments to extremely bullish.
Shopify price showed an uptrend for the past sessions and maintained the gains above the key moving averages in the bullish territory. The one-day timeframe shows bullish momentum at present. Moreover, price action favors the buyers, and long buildup activity was noted on the charts.
Shopify Stock (NYSE: SHOP): Navigating the Path To $71 Mark
Shopify stock (NYSE: SHOP) is flying high above the 50 and 200-day simple moving averages showing a strong bullish trend.
MACD also turned bullish. MACD line and signal line gave a bullish cross that was about to cross the zero line. However, the bullish cross in MACD and green histogram indicate bullishness in the stock. RSI is entering the overbought zone. The RSI line floating near 68.86 and the 14 SMA line is at 41.26. RSI indicates bullishness in SHOP price.
Weekly Charts Price Analysis
On the weekly charts, the Shopify price flips bullish and breaks the 200 EMA line with a strong bullish candle indicating strong momentum in upcoming weeks.
The MACD indicator showed a bullish crossover, the red bars were near the end, and a crossover was imminent indicating bullish momentum. The RSI curve is near 60, the overbought territory, forming a positive crossover due to the high volume in price, which impacts a positive outlook on the charts.
Summary
Shopify stock is showing strong bullish momentum that is likely to continue its upward trend after the partnership deal with Amazon. The stock price is getting support from key moving averages and the high trading volume. The key indicators MACD, RSI, and EMAs are all signaling positive momentum and bullishness.
Therefore, Shopify stock is in a favorable position to gain more value and reach new highs. Nevertheless, investors should also be aware of the potential risks and uncertainties that may affect the stock price such as market volatility, competition, regulation, and earnings reports.
Technical Levels
- Support Levels: The nearest support levels for the Shopify stock price are $61.58 and $51.35.
- Resistance Levels: The nearest resistance levels for the SHOP stock price are $68.11 and $71.68.
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
