Shopify Gains 3.36% As Technical Indicators Signal Bullish Reversal

Shopify (SHOP) rose 3.36% in the most recent session, marking its second consecutive daily gain and bringing its two-day advance to 3.78%. This upward momentum culminated in a closing price of $109.98, with the session ranging between $103.91 and $110.06 on moderate volume.
Candlestick Theory
The recent price action in Shopify reveals a nascent bullish reversal pattern. The last two sessions formed consecutive white candles, with the most recent candle closing near its high after breaking above the prior day's high of $106.40. This suggests strengthening buying pressure. Significant resistance emerges near the June 11 peak of $117.36, while immediate support rests at the June 20 low of $105.73. A key psychological resistance level exists at $110, which the price briefly tested in the latest session.
Moving Average Theory
The 50-day moving average (currently near $103.50) maintains an upward slope, confirming the intermediate bullish trend. However, the price remains below the flattening 20-day EMA (∼$107), indicating near-term consolidation. A potential bullish signal may emerge if the price sustains above the 20-day EMA. The absence of longer-term averages (100/200-day) due to data limitations constrains perspective, but the intact 50-day uptrend suggests underlying strength.
MACD & KDJ Indicators
The MACD histogram shows diminishing negative momentum, hovering near the zero line after a bearish crossover in early June. This indicates weakening downward pressure, though a definitive bullish crossover remains unconfirmed. The KDJ indicator presents a more constructive view: The K-line (61) has crossed above the D-line (58) from oversold territory, suggesting improving short-term momentum. This bullish stochastic crossover coincides with price stabilization after the June pullback.
Bollinger Bands
Bollinger Bands have contracted noticeably after the mid-June volatility spike, with bandwidth narrowing to 12% from 18% in early June. This compression indicates reduced volatility and typically precedes directional breakouts. The price is currently testing the middle band ($107) from below. A sustained break above this level would signal bullish potential toward the upper band ($113), while failure could retest the lower band ($101).
Volume-Price Relationship
Volume patterns validate recent price moves. The June 11 surge to $117.36 occurred on elevated volume (14M shares), confirming bullish conviction. Conversely, the subsequent 13% decline saw diminishing volume, suggesting limited seller commitment. The latest 3.36% advance lacked significant volume expansion, introducing sustainability concerns. For continued upside, confirmation via volume expansion above the 10-day average (∼7.5M shares) is critical.
Relative Strength Index (RSI)
The 14-day RSI (56) sits in neutral territory after rebounding from oversold conditions (29 on June 13). While avoiding overbought (>70) signals, the current reading permits additional upside. Notably, the RSI has formed a higher low against price’s flat bottom in mid-June, creating a mild bullish divergence that suggests weakening downward momentum.
Fibonacci Retracement
Applying Fibonacci levels to the major swing low of $69.84 (April 4) and high of $117.36 (June 11) reveals key technical thresholds. The recent consolidation stabilized near the 50% retracement level ($93.60), which coincided with the May low. Current trade is between the 38.2% ($101.70) and 23.6% ($107.80) retracements. The 23.6% level provided resistance on June 20, making a sustained break above $108 critical for bullish continuation.
Confluence & Divergence
A notable confluence exists around $106-108, where the 23.6% Fibonacci level, 20-day moving average, and Bollinger Band midline converge. A sustained break above this zone with volume confirmation would strengthen the bullish case. The most significant divergence appears between MACD’s bearish bias and KDJ’s bullish signal, suggesting indecision that may resolve with volatility expansion. Current technical positioning favors cautious upside potential, contingent on reclaiming $110 resistance and resolving Bollinger compression.