Shopify Gains 3.51% Amid Strong Technical Support At 107

Shopify (SHOP) rose 3.51% in the latest session, marking two consecutive days of gains totaling 5.87%. This upward momentum occurs against a backdrop of significant technical signals across multiple frameworks.
Candlestick Theory
The recent 6.07% bullish engulfing pattern on June 6 (low: $106.66, high: $112.08, close: $111.41) established $107 as strong support. Subsequent rejection near $117.36 suggests resistance at this level, with the current consolidation above $114 demonstrating buyer retention. The double-bottom formation in early May ($74.67) further reinforces $75 as a major long-term support zone.
Moving Average Theory
The 50-day MA (currently near $98.50) slopes upward after crossing above the 100-day MA ($91.20) in mid-May, confirming a bullish medium-term trend. Price remains firmly above both averages, with the 200-day MA ($88.40) providing a foundational support baseline. The sustained posture above these key moving averages signals continued bullish momentum barring a decisive break below $110.
MACD & KDJ Indicators
The MACD histogram shows weakening positive momentum as it converges toward the signal line near the zero axis, suggesting potential trend exhaustion. Meanwhile, the KDJ oscillators exhibit divergence: The %K line (78) and %D line (72) remain in bullish territory but have flattened despite price gains, indicating waning upward pressure. This dual momentum signal warrants caution for near-term consolidation.
Bollinger Bands
Volatility expansion is evident with bands widening from a 20-day average width of $3.50 to $6.20 recently. Price consistently tests the upper band ($118) but fails to close above it, reflecting resistance. The bandwidth expansion during the May-June rally confirms strong directional momentum, though contraction from current levels could precede a pullback.
Volume-Price Relationship
The May 12 breakout rally (+13.7% on 30.7M shares, 2× average volume) validated the uptrend initiation. Recent gains show comparatively lower volume (June 11: 14.1M vs. 16.3M peak), raising sustainability concerns. Critical support/resistance tests require volume confirmation to demonstrate conviction – notably the $117.36 resistance where volume peaked.
Relative Strength Index (RSI)
The 14-day RSI (62) retreated from near-overbought territory (73 on June 6) but holds above neutrality. While not yet signaling overbought conditions, its failure to exceed prior highs during recent price tests at resistance suggests bearish divergence. This divergence increases near-term downside probability, though decisive clearance above 70 RSI would renew bullish momentum.
Fibonacci Retracement
Applying Fibonacci to the May swing low ($74.67) and June high ($117.36) shows critical confluences: The 38.2% retracement ($101.30) aligns with the June 9 reversal point, while the 50% level ($96.00) converges with the 100-day MA. These technical anchors provide clear pullback reference points. The 61.8% retracement ($90.70) represents a major support should deeper correction occur.
Confluence & Divergence Observations
Multiple indicators converge at $117-$118 resistance (Bollinger upper band, June 11 high, Fibonacci extension). Meanwhile, bearish divergences emerge between price action and both MACD/RSI momentum indicators. Volume discrepancy during recent highs further questions breakout sustainability. The $107-$110 zone offers robust confluence support (June swing low, 50-day MA, volume point of control). Given conflicting signals, traders should monitor the $117 break vs. $110 hold for directional bias confirmation.