Stock of the day: Shopify

In today’s technical spotlight, Shopify finds itself at a crucial crossroads. The stock has been shaping a large inverse head and shoulders pattern—an established bullish reversal formation—marked clearly with blue rectangles. After forming the left shoulder in early spring, the head in late April, and the right shoulder more recently, Shopify is now pressing up against the neckline of this formation, which is defined by the yellow resistance level.

A daily close above this neckline would confirm the breakout, thereby activating a strong buy signal with bullish implications for the mid- to long-term outlook. Traders anticipating a reversal have been watching this zone closely, and a breakout could accelerate buying pressure.

However, if buyers fail to conquer the neckline, attention must shift to the black uptrend line. This line connects the bottom of the head and the right shoulder and serves as critical structural support. A daily close below this black line would invalidate the bullish pattern and instead deliver a powerful sell signal, potentially leading to a deeper decline.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-shopify