When we last reviewed the charts of Shopify (SHOP) on October 20, we said that, "The charts of SHOP suggest further price weakness ahead. I continue to anticipate further weakness into the year's end." Well, prices have continued to decline and are now close to breaking what most technical analysts call a "neckline."
Let's see what the latest charts of SHOP reveal.
In the daily bar chart of SHOP, below, we can see that the shares have stalled their upward progress the past four months. There have been four unsuccessful upside attempts that I count. Prices are below the now declining 50-day moving average line.
The On-Balance-Volume (OBV) line shows weakness the past three months telling us that sellers of SHOP have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is close to a bearish cross of the zero line.