A Trade Plan for Shopify

$SHOP

The relentless post earnings selling in SHOP 0.00%↑ has abated, at least for today. The gap and hold we’re seeing today has taken the stock above what is now an upward sloping 5 day moving average. There are currently 2 notable/sizable gaps above and below. They’re measured in the chart below, and while these aren’t met to be specific buy and sell targets, they’re meant to highlight the range a gap fill in either direction would encompass. At the current price, it’s a 1.5:1 split to the upside, which provides favorable risk reward. As with any trade, you have to make it your own, and perhaps it’s not a play on the a complete fill, but ones own entry and exit should be defined ahead of a trade, and the chart is showing us that there could be more upside to a long from here, relative to a short. I’m personally playing this with a long bias, and I’ve defined my downside risk at yesterdays low near $57.