SHOP Stock Surges 22%; Shopify Stock Getting Ready For New High?

SHOP stock price surged 22.36% in the previous session and broke out of the $55 hurdle with a high buying volume. The recent gains in the Shopify stock price are due to the surprising quarterly earnings reported by the company.

Investors of Shopify Inc. reacted positively and looked quite satisfied with the results. The stock price opened a gap-up in the previous session and continues to rise upward.

It displayed a bullish trend reversal pattern on the daily chart. But the confirmation will come when the SHOP stock price holds higher levels and gives a follow-up.

Shopify stock price succeeded in climbing above the 50-day and 200-day EMA. It indicates that buyers are trying their best to bring back the confidence of the long-term investors.

On October 25, 2023, the SHOP share price slipped below the crucial support of $50.00 which triggered negative sentiments. Luckily, the stock price did not decline much and buyers succeeded in halting the downfall near $45.00.

Recently, earnings were released which panicked the short sellers so they preferred to exit. Moreover, the recent upmove looks like a mixture of short covering as well as genuine buying.

Will SHOP Stock Price Fill the Gap Before Heading Higher?

SHOP stock price left a big gap in the previous session which will now act as a support zone in the coming months. However, the question is whether the gap will be filled or the price will continue to rise by forming higher highs.

The analysis suggests that till Shopify stock price sustains above $55.00, the bulls will lead the direction. But if the price drops below $55.00, the price will retrace down and fill the gap.

On the lower side, $45.00 will act as strong support. Until it gets broken, the probability of the bounce back will remain high.

Shopify Stock Price Gained Positive Momentum

Shopify stock price gained positive momentum and recovered the losses of the previous month. The next surge will trigger when buyers can break the $67.55 hurdle.

Shopify Inc. reported an EPS of $0.24 vs $0.145 of EPS estimate. The reported revenue is $1.714 Billion vs $1.672 Billion in estimate.

The company beat both EPS as well as revenue estimates by 65.05% and 2.48%, respectively. The earnings were good and it benefited the short-term bullish traders.

Conclusion

SHOP stock price surged 22% approx in a single day after the release of earnings. It gained positive momentum and the correction has taken a halt. The analysis suggests if the Shopify stock price sustains above $55, then investors may see more upside in the upcoming months.

Technical Levels

Resistance levels: $67.55 and $71.43
Support levels: $45.30 and $39.79

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.