Shopify Jumps 3.52% to $145.15 on Strong Technical Breakout

Shopify (SHOP) recently advanced 3.52% to $145.15, marking its second consecutive positive session with a cumulative 4.39% gain. The stock traded between $140.07 and $145.61 on elevated volume of 6.53 million shares, signaling strong buyer participation near crucial technical levels.
Candlestick Theory
The September 4th session formed a robust bullish candle closing near its high after the prior day's indecisive doji near $140. This pattern indicates accumulation overcoming August’s consolidation range between $135.39 and $150. Immediate resistance converges at the $145.61 intraday high, aligning with July’s $148.50 swing high. Support is firmly established at the $135-$138 zone, which contains the August 22nd hammer low and multiple July reversal points.
Moving Average Theory
SHOP trades decisively above all key moving averages (50-day ~$127, 100-day ~$121, 200-day ~$108), confirming a major uptrend. The 50-day MA crossed above both longer averages in late July, generating a golden cross that accelerates bullish momentum. Recent pullbacks have respected the 50-day MA as dynamic support, reinforcing its technical significance. The ascending slope across all timeframes underscores sustained institutional accumulation.
MACD & KDJ Indicators
The MACD histogram turned positive in late August after a bullish signal line crossover near the zero line, signaling renewed upside acceleration. KDJ's %K (75) and %D (70) are testing overbought territory but maintain upward slopes, reflecting persistent momentum. Bearish divergence remains absent as both oscillators confirm higher price highs. The MACD's position above its signal line supports continuation patterns toward resistance clusters near $150.
Bollinger Bands
Price rebounded sharply from the lower band ($135) in late August into the upper band ($145.61) by September 4th – a volatility expansion that typically precedes directional moves. Bandwidth contracted 18% in the preceding consolidation, compressing energy for this breakout. Current upper band proximity suggests near-term resistance, but consecutive closes above $143 would confirm bullish expansion targeting the $150-$152 resistance zone.
Volume-Price Relationship
The 6.53 million shares traded on September 4th exceeded the 15-day average by 24%, validating the breakout’s strength. Notably, August’s key reversal (21.97% rally on 38.6M shares) established a high-volume anchor at $135. Subsequent pullbacks occurred on diminishing volume, including the September 2nd sell-off on 5.08M shares versus the prior session’s 6.34M shares. This divergence between price drops and volume contraction reveals weak distribution.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory but hasn’t crossed the 70 threshold, allowing room for continuation. RSI’s higher low in August against price’s marginally lower low demonstrated positive divergence, foreshadowing the current rally. While RSI bearish divergence would warrant caution above 70, its current trajectory aligns with the MACD’s momentum confirmation. RSI support near 50 coincides with the 50-day MA.
Fibonacci Retracement
The primary swing from June’s $103.91 low to August’s $151.65 high establishes key Fibonacci levels. SHOP has reclaimed the 23.6% retracement ($142.19) and is testing the 38.2% level ($135.92) as support. Confluence exists at the 50% retracement ($130.78) where the 100-day MA and July’s volume shelf converge. The current rally faces immediate resistance at the 0% level ($151.65), aligned with psychological $150 resistance.
Confluence and Divergence Observations
Strong confluence exists at $135-$138 where the 38.2% Fibonacci, 50-day MA, August swing low, and Bollinger Band support intersect. The September 4th breakout above $145 gained validation from MACD momentum, volume expansion, and candlestick conviction. Minor divergence appears as RSI nears overbought while KDJ’s %K flattens – warranting vigilance for consolidation, though no bearish reversal patterns are evident. The primary trend remains constructive with cluster support near $135 outweighing resistance concerns.