Jim Cramer told his Mad Money viewers Friday evening that on Wednesday he will be monitoring a number of tech earnings including Shopify (SHOP) .
Ahead of those earnings, let's monitor SHOP's charts.
We looked at SHOP back on Dec. 22 and wrote that, "What to do? It would be a lot easier if I had paid more attention to SHOP and the indicators and was able to recommend it closer to the breakout point around $1,100, but up here in the stratosphere the risk is different. The $1,516 price target is eye-popping but what do you risk? The best recommendation I have is to try to buy SHOP near $1,200 and then risk to $1,100. If prices don't dip to $1,200 or you can't afford a stop $100 away then do nothing. There are plenty of other stocks out there."
Traders did get a dip to buy SHOP in late December but they may have also gotten stopped out.
In the updated daily bar chart of SHOP, below, we can see that SHOP has soared to new heights. Prices tested the rising 50-day moving average line at the end of January and the early days of February. The 200-day moving average line has a positive slope too but intersects about $500 below the price action.
The trading volume has been declining since November and might suggest that investors are starting to lose some of their enthusiasm for the stock. Others might suggest that the high per share price is lessening the turnover. The On-Balance-Volume (OBV) line shows a peak at the end of July and then a slow decline telling us that traders of SHOP have been neutral to slightly more aggressive sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.