Shopify (SHOP/USD) was trading over 6% higher as it saw a strong gap up opening which is suggesting that the bulls are back in Shopify. Shopify saw a gap up of over 3% which is indicating that the Shopify correction could be over.
After hitting a new all-time high in November Shopify started its correction and fell from $1690 to $1381, thus investors who missed the previous rally are now looking for opportunities to enter Shopify. This could be a great time to enter Shopify as it could soon start a rally to hit a new all-time high.
However is this the correct time to enter Shopify?
Here is what the charts are pointing towards-
Shopify has formed a wedge and has been in a strong uptrend this year, it also tested the trendline earlier this week however a false breakdown was seen which is a very bullish indicator for Shopify.
Shopify has formed strong candles at the supporting trendline which is suggesting towards a strong reversal.
This could be the start of a rally, thus investors can take long entries after a small pullback so that the rally is not missed.
With the momentum that Shopify is showing it is looking like a new all-time could be seen very soon.
A breakout from the wedge that Shopify has been trading under this year could also be seen, which could yield high returns.
Shopify has taken support from the 200-day moving average and has also broken through the 50-day moving average, this is suggesting that the buyers are back in Shopify and that it could be the start of a bullish rally.
Investors can set a target at $1790, however, investors must be cautious of the resisting trendline as it could cause a rejection in the price.
A stop-loss can be maintained at $1340.
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