Shopify Inc. (SHOP) stock price illustrates a consolidation of over 27 intraday sessions. The stock price persists in neutral over the charts in the short term. The earning days are near and the investors may be waiting for a clear direction that the stock price may exhibit after the earnings.
The company is yet to announce quarterly results on Thursday, 2nd November which may impact the price trend. The Wall Street analysts are estimating the revenues to be around $1.669 Billion and expecting the company to show earnings of $0.145 Billion. An outperforming earnings might attract investors and the stock may resume its long-term bullish trend.
SHOP Stock Price Analysis Over Daily Time-Frame
Shopify stock price trend analysis over the daily charts showcases a bullish outlook in the long term and a neutral to bullish trend in the short term. The stock price accumulates near the recent swing low.
The breakout or breakdown of the range might decide a clear short-term trend.
The technical indicators imply that the SHOP stock price fell below the 50-day EMA indicating a selling pressure in the short term. Also, the stock price hovers near the 200-day EMA indicating that the bulls may try to enter the market and surge the price higher.
However, the breakout above the range will confirm the presence of buyers at the lower levels.
Shopify Stock Price Analysis Over Weekly Timeframe
The weekly SHOP price chart elaborates that the stock price has exhibited a sideways trend in the last two quarters. The Shopify stock price struggled to surpass the 200-day EMA.
Moreover, at p, the price seems to be retesting the previous breakout zone over the weekly chart and struggles to sustain near the 50-day EMA. The breakout above the 50-day EMA may turn the trend slightly optimistic. The breakout above the 200-day EMA may turn the trend super bullish and the stock price might show gains to reach a mark of three digits.
Technical Indicators Show Neutral to Bullish Trend
The daily SHOP stock price chart shows that the price fell below the 50-day EMA indicating bearish dominance in the short term. Currently, the price is hovering near the 200-day EMA indicating the bulls may re-enter as the price is discounted. At press time, the RSI lines show a positive crossover but hover below the mean line indicating neutrality over the chart.
The overall technical opinion rating including RSI and MACD signals a 72% “sell” with a strong short-term outlook on maintaining the current direction.
The analysts offering a 1-year price forecast for the Shopify stock have a maximum potential of 51.40% on the upside which could lead the price to a high of $80. The minimum estimate of the analysts expects a drawdown of 1.59% from the current price and drags the price to a low of $52.
Conclusion
Shopify stock price hovers in a short range and waits for the earnings report on 2nd November. The earnings could affect the price trend. The daily and weekly charts show that the price needs to break above the 50-day and 200-day EMA to turn bullish in the short term.
The analysts have different estimates for the price in the next year, from $52 to $80. The price could show gains or losses depending on the earnings and the market sentiments.
Technical Levels
- Support levels: $50.85 and $47.84
- Resistance levels: $55.57 and $62.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/19/shopify-stock-price-falls-below-200-ema-is-the-price-discounted/