August 6 Chart of the Day - Shopify

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Shopify (SHOP) is a leading e-commerce platform for online stores and retail point-of-sale systems that reports earnings before market open on Wednesday so we wanted to review their chart from a price action technical analysis perspective. 

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Monthly Chart 

On the monthly chart we can see that after setting its $176.29 all time high (ATH) back in 2020 price fell dramatically all the way down below $25 over the next few years. 

Since then, price has slowly been making a series of higher highs and higher lows and seemingly is at a decision point.

Weekly Chart

 
On the weekly chart we can see with much more clarity the series of higher highs and higher lows since bouncing.

Trading around $54.50 earlier today price may be attempting to retest or break out above a trend line that it recently fell below.

The market is implying about a $6.85 move in either direction as marked on the weekly chart by this Friday August 9.  Share price has risen during the week of earnings 4 of the last 8 quarters.

Could earnings be the catalyst that pushes price above this key resistance zone or will price continue fading?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next?