SHOP - BULLISH SCENARIO since 12 MAY 2025

[kevin1]

SHOP - CURRENT PRICE : 145.15

SHOP is bullish as the share price is above 50-day EMA. Price action on 12 MAY 2025 is considered starting of bullish scenario because supported by several key indicators :
Share price gap up
Price broke out 50-day EMA
Price moving above ICHIMOKU CLOUD
RSI moving above 50

From 1 August (near 50-day EMA support) to 6 August, the stock recorded a strong upward rally. Following this advance, prices entered a corrective phase and retraced approximately 50% of the prior upswing. According to Dow Theory, such a retracement is considered a normal and healthy correction within an ongoing uptrend. Retracements in the range of one-third to two-thirds of the prior move are typical, with the 50% level often serving as a natural equilibrium point where buyers re-enter the market. Sustaining above the 50% retracement level would reinforce the bullish structure, while a recovery from this zone could pave the way for a retest of the recent highs. However, a decisive break below the 61.8% retracement may imply weakening momentum and a deeper corrective phase.

Take note that until now the share price is still above 50-day EMA and ICHIMOKU CLOUD while RSI also moving steadily above 50 level. There is also rising support line - strengthening bullish outlook.

ENTRY PRICE : 141.00 - 145.50
TARGET : 159.00 and 175.00
SUPPORT : 50-day EMA (CUTLOSS below 50-day EMA on closing basis)