Here’s your trade on Shopify ($SHOP) – January 24, 2023SHOP
Today I want to look at Shopify ( NYSE: SHOP ), here’s why. If you are a candlestick trader you would look at this and say wow. This is what is called a tombstone doji, the next move down.
This is a big massive spike and then a nasty close. So effectively the buyers were rejected right here and then all this selling happened. So you have got to stay away from this, that’s it, this is the bottom, right here. Get out, get out right now.
Now, that may very well be the case. However, if you look at the intraday chart you will see that this, along with several other NASDAQ stocks, there was an exchange issue. It didn’t have anything to do with news out of Shopify ( NYSE: SHOP ) or any of these various other companies where the stocks did this.
But there is a huge massive gap up, and then the stock was halted. And then when it finally started again, it fell back down. So it wasn’t this big buying spree, it was an exchange issue, so it is kind of like this has screwed up the chart, if you are looking at it in a traditional “candlestickian” way.
I like this stock still, we’ve been in it at Stock Market Mentor as an active trade for several points, we started at 38.00, right there. So as of yesterday, we are up 13ish percent, and now we are still up 9.5 percent. I like the way this is trading. I would say that their earnings don’t come until the middle of next month so there is plenty of time for this to keep moving.
I would suggest if you are in our Stock Market Mentor group on the premium side, I am just suggesting that you keep the stock. We’ve got the stop currently at 37.65, so what we are doing is, we are effectively locking in $1.21, something like that in losses.
Our maximum risk is $1.21, which gives the stock room to move. It can gyrate around a bit, which is what stocks do, it doesn’t just move in a straight line. And then if this stock runs above 45.00, that is when I would actually buy more. That is when I would add to the position.