Shopify Inc. (SHOP) is edging closer to a resumption of its advance. When we looked at SHOP back on April 8 we wrote that, "Aggressive traders could go long SHOP at current levels only if they can afford to risk to $1,050 for now."
Time for another review.
In the updated daily bar chart of SHOP, below, we can see that the shares tested the $1,050 area in the middle of May and may have stopped out our recommendation. SHOP has since rallied but has not yet overcome the late April highs. The slope of the 50-day moving average line is positive and so is the slope of the 200-day line.
The On-Balance-Volume (OBV) line shows improvement from March and is close to making a new high for the move up. Strength of the OBV line tells us that buyers of SHOP have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed and could cross to the downside for a take profit sell signal.