Shopify Jumps 3.19% as Technicals Signal Bullish Reversal Momentum

Shopify (SHOP) closed at $166.43 on October 8, 2025, marking a 3.19% gain for the session amid recovery from prior volatility.
Candlestick Theory
Recent candlesticks suggest a bullish reversal pattern emerging. The October 3rd session formed a decisive bullish marubozu (closing near highs after a 6.50% surge from $152.50), breaking above the $160 psychological resistance. Subsequent consolidation culminated in a bullish engulfing pattern on October 8th, erasing the prior session’s decline and closing near the high at $166.43. Key support now rests at the October 1st low ($146.10), with resistance near the September 22nd peak ($159.01). A sustained breach above $167.54 could signal continuation momentum.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (MAs) exhibit bullish alignment. Current price ($166.43) trades above all three MAs, with the 50-day MA (approximated near $150) crossing above the 200-day MA in August – a "golden cross" signaling long-term bullish momentum. The 50-day MA has consistently acted as dynamic support during September pullbacks. The ascending MA hierarchy (50 > 100 > 200) confirms a robust uptrend. A convergence near $145 in early October provided a springboard for the current rally.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum, with the signal line maintaining above zero since early October. KDJ readings rebounded from oversold territory (below 30) on October 3rd, triggering a stochastic crossover buy signal. Both oscillators now hover near overbought thresholds (KDJ ≈75, MACD divergence positive) but without immediate bearish divergence. This confluence supports near-term upside, though stretched KDJ levels may precede minor consolidation.
Bollinger Bands
Volatility expanded sharply during the early October breakout, with price punching above the upper band on October 3rd – a sign of strong directional conviction. Recent sessions retested the 20-period midline (near $160) as support, holding firmly. Bandwidth contraction in late September preceded the explosive 14% rally from September 29th to October 3rd. Current upper band resistance lies near $170, while sustained trading above the midline reinforces bullish control.
Volume-Price Relationship
Breakout validation is evident: The October 3rd surge (+6.50%) registered the highest volume in three months (15.7M shares), confirming institutional accumulation. Subsequent pullbacks saw diminished volume (e.g., October 7th: -1.96% on below-average volume), suggesting weak selling pressure. The October 8th advance occurred on moderate volume (7.3M shares), lacking the enthusiasm of the initial breakout but still supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI (≈62) recovered from a brief dip below 50 in late September and now approaches overbought territory (>70) but retains upward momentum. Notably, RSI diverged positively in late September when price tested $140 while RSI formed a higher low – foreshadowing the October rebound. Current RSI trajectory suggests room for further upside before overbought risks materialize, though a reading above 70 would warrant caution.
Fibonacci Retracement
Applying Fibonacci to the April 4th low ($69.84) and October 8th high ($167.54): The 23.6% retracement level ($137.50) anchored critical support during September selloffs. Price respected this level repeatedly before launching upward. Recent consolidation near the 38.2% level ($119.50) in July-August established a launchpad for the 67% rally to current levels. Confluence between the 23.6% Fib, the 200-day MA, and the psychological $140 zone underscores formidable long-term support.
Confluence and Divergence
Confluence is pronounced at key support zones: The $137–$140 area aligns with the 23.6% Fibonacci level, 200-day MA, and Bollinger midline, attracting buyers during corrections. Bullish alignment of MACD, KDJ, and volume validated the October breakout. A minor divergence occurred in September when RSI’s higher low contrasted with price’s lower low – a leading indicator of reversal. Currently, no significant bearish divergences are observed, though stretched KDJ and approaching RSI thresholds suggest near-term consolidation may precede further upside.