Its stock rose 124% last year and is up 21% since the start of 2024

Shopify is expected to report earnings tomorrow as the earnings season continues. Its stock price rose 124% last year and is up 21% so far this year. Currently, its shares are trading at around $90.74 a share after the 10% in last week alone. From a technical aspect, last week’s engulfing candlestick is a bullish indication. We can see the price pierced through the 200-day moving average and closed well above it. This usually indicates a build of momentum, suggesting that further upside is possible. The next resistance here for the bulls is $98.71, a break above it would then turn the focus towards $110. On the other hand, a weaker-than-expected earnings outcome could see a re-test of this 200MA, which is now acting as the key support here. The 200MA is currently reading $82.54, a break below it may see a slide lower toward $75.84. Looking at the technical indicators, the MACD is still positive and rising, however, even though the RSI is also positive it also suggests that the stock is a little overbought. The RSI is reading 72 and it has just entered the overbought territory.