Shopify stock (NYSE:SHOP) dropped over 10% yesterday as investors peeled out of some e-commerce favourites and into value stocks. The drop continues Shopifys decline, with the stock now down 30% since mid-November.
SHOP now trades below the 50DMA ($1473.73) and the 200DMA ($1386.09). These are often buy zones for banks and the price was reacting to these as support previously. These have both fallen through and the stock is much more bearish now.
$1270-$1300 was a strong pivot zone for the price (grey area marked). This has also failed as support. So where may the price go now? Investors will be looking for $1200 to see some buyers come in. This has support from both a demand zone and also a trend-line stretching back to September 2020. If this does not hold, $1000 would be the next level to watch for. This would mean a further drop of $200 for the price.
Shopify stock is likely to provide more short opportunities than long options over the next weeks. We are keeping this chart on watch to capitalise on.
AlphaPicks does not currently own any of the mentioned stocks. To buy crypto and shares, register here with our preferred partner, EToro.