Shopify Jumps 6.07% to $111.41 on Technical Breakout With 7.56% Two-Day Rally

Shopify (SHOP) demonstrated notable strength in the most recent session, advancing 6.07% to close at $111.41. This marks the second consecutive daily gain, contributing to a two-day rally of 7.56% with higher-than-average trading volume supporting the breakout.
Candlestick Theory
Recent candlesticks reveal significant bullish momentum as SHOP broke through the $106 resistance level on June 5th with a decisive white candle. The follow-through day on June 6th established $106.66 as immediate support. Key resistance now emerges at $112.08 (June 6th high), coinciding with the 2025 peak of $112.38 recorded on May 16th. The absence of long wicks at recent highs suggests sustained buying pressure rather than exhaustion.
Moving Average Theory
Calculations show the 50-day moving average sloping upward at $99.78, reinforcing intermediate-term bullish sentiment. SHOP currently trades 11.6% above this level, maintaining consistent distance since its May 12th breakout. The 20-day MA at $105.21 provides dynamic support, with the June 5th low of $103.1 rebounding precisely at this level before the current surge. Golden Cross conditions persist from mid-May.
MACD & KDJ Indicators
MACD histogram shows expanding positive momentum since June 3rd, with both signal line and MACD crossing into bullish territory. KDJ readings exited oversold on June 5th (K: 32, D: 28, J: 40) and surged to neutral territory (K: 65, D: 52, J: 91) by June 6th. While KDJ's J-line approaches overbought threshold at 91, this aligns with MACD strength, suggesting room for continuation rather than immediate reversal. Divergence occurred May 20-23 when prices tested $101.55 despite rising MACD – foreshadowing the current advance.
Bollinger Bands
Volatility expanded notably with band width increasing 18% during the two-day rally. SHOP pierced the upper Bollinger Band ($108.40) on June 6th, historically indicating sustained directional moves. The June 5th reversal occurred precisely at the middle band ($104.15), validating its support relevance. Band contraction preceding this move (June 3-4) signaled impending volatility surge.
Volume-Price Relationship
June 5th's breakout occurred on 11.0 million shares (20% above 30-day average), while June 6th's continuation registered 8.7 million shares (slightly above average). This volume pattern confirms institutional participation. Volume divergence warned of weak downtrends earlier (May 21-23 decline on shrinking volume), while the May 12th 13.7% surge on explosive volume (30.7 million shares) established the foundational bullish impulse.
Relative Strength Index (RSI)
RSI rebounded from 42 (moderately oversold) on June 4th to current 68 – approaching but not yet exceeding the 70 overbought threshold. While RSI hasn't confirmed new highs relative to the May 16th peak (RSI: 72), its current trajectory lacks concerning divergence. Multiple oversold readings below 35 in April (notably 28 on April 9th) established reversal points.
Fibonacci Retracement
The primary retracement grid anchored between $69.84 (April 4 low) and $112.38 (May 16 high) shows confluence at key levels. SHOP recently found support at the 38.2% retracement ($98.15) during late-May consolidation. Current resistance clusters at the 78.6% level ($109.52), which was breached decisively this week. The $113.36 level (projected 127.2% extension) becomes critical psychological resistance if momentum continues.
Confluence & Divergence Synthesis
Notable bullish confluence emerges with the break above $109.52 Fib level, supported by MACD acceleration and Bollinger Band expansion. Volume confirms institutional accumulation during recent consolidation. However, tactical divergence exists as RSI (68) remains below its May high (72) despite price nearing resistance. This suggests monitoring for exhaustion near $112.38-113.36 resistance. Intermediate pullbacks to test the $109-$110 support band appear probable before further breakout attempts. Overall technical structure favors continuation, with $116 achievable if volume maintains above 8 million shares through resistance.