The e-commerce site Shopify ( SHOP) has been a big long-term winner for buy-and-hold investors and for traders. We reviewed the charts of SHOP almost one month ago on Oct. 28 and wrote that "Traders could go long SHOP on a two-day dip risking below the 200-day moving average line."
Let's see what has transpired the past four weeks. 
In this updated daily bar chart of SHOP, below, we can see that prices rallied to a new high shortly after our late October review. SHOP spiked up to $1,762 and has pulled back to the top end of the $1,600 to $1,300 trading range.
Is this a pullback to the breakout and thus a buying opportunity or is it a bull trap and prices vulnerable to further weakness?
We can also see that trading volume was strong in the middle of November, when prices made a new high, but the volume was less than what was seen in late October at the test of the 200-day moving average line. The On-Balance-Volume (OBV) line shows a positive trend the past twelve months with only a small dip now. Perspective. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside for a take-profit sell signal.
In this weekly Japanese candlestick chart of SHOP, below, we can see a top reversal pattern composed of the three most recent candles. This pattern does not mean prices have topped out as Japanese technical analysts consider a reversal to be either a turn from up to down or a turn from up to sideways. This could be a 90 degree turn and not a 180-degree turn. Prices are above the rising 40-week moving average line. The weekly OBV line is still positive. The MACD oscillator is wobbling a little after its recent buy signal.
In this daily Point and Figure chart of SHOP, below, we can see that the software is projecting a downside price target in the $1,288 area. When I look at this chart I see a lot of support below the market and I don't see a weak chart.
In this weekly Point and Figure chart of SHOP, below, we can see an upside price target in the $2,632 area. A big difference from the daily chart.
Bottom line strategy: One of the complaints leveled at technical analysis is that it is too subjective -- one analyst sees a chart and indicator as bullish and another sees them as bearish. Two medical experts can come to a different conclusion looking at the same X-ray and fundamental analysts have different views and price targets. Let's spread the complaints around.
The news flow and trading volume tell me that SHOP did not make a bull trap and that the candlestick reversal is probably going to result in some sideways price movement for a couple of weeks. Continue to hold longs recommended in late October.
