Concerns for Shopify as price broke below trendline support

Shopify broke below its trendline support last week, with the support in focus now around $45.51 (October lows). A fall below this level could see traders look towards the level of $39.10, though this could create some concerns for the company as it would imply no gains in a 16-month period. The company is expected to report an EPS of $0.20 on revenue of $20.01bn for the last quarter. The shares closed yesterday’s session at $52.28 a share with the likelihood of lower liquidity today due to the anticipated earnings tomorrow. It would be unreliable to point to any resistance levels as the Nasdaq is now within correction territory and the stock itself presents a similar trend. However, a close back above $55 might be a good start. We can see the technical indicators have been shifting in the negative direction since the end of February, particularly the MACD. Both the MACD and RSI are now in bearish territory so caution should remain ahead of the earnings.