During Tuesday's Mad Money program, Jim Cramer pointed out that Covid-19 is also what sent technology stocks soaring Monday, with stocks like Amazon (AMZN) and Shopify (SHOP) continuing their gains, as they're the only retailers equipped for a stay-at-home world.
Shares of SHOP have nearly doubled this month so the question is when do we see a correction. Let's review the charts and indicators.
In this daily bar chart of SHOP, below, we can see prices have made a number of huge swings in price. We can see the rally from November to a spike high in February. The subsequent decline to near $300 in March and more recently the breadth-taking rally to a new high. Truly amazing.
Prices are above the rising 50-day moving average line and I would consider it extended above the rising 200-day moving average line.
The trading volume has increased the past three months which is a positive and the On-Balance-Volume (OBV) line has made a new high for the move up to confirm and support this advance.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and rising so it is bullish too.