Shares of e-commerce platform Shopify (SHOP) are trading higher Monday on the heels of a busy Black Friday for their retailers.
In our last review of SHOP on August 11 we wrote that "SHOP should be able to extend its gains on the upside, but keep a close trailing stop as I am nervous staying long for the broader market averages."
Let's check out the charts and indicators again.
In the daily bar chart of SHOP, below, we can see that the shares receded from the middle of August and made a new low in October. Prices have firmed up from its October nadir with SHOP approaching the underside of the declining 200-day moving average line. Trading volume has declined in the month of November as prices have advanced -- this is not a strong and durable advance. A strong advance is when trading increases in the direction of the trend.
The On-Balance-Volume (OBV) line shows a modest increase the past two months. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but pointed lower.