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Shopify - the set-up for the upside is there, but will the earnings justify?

Chart & Data from IG

By Minipip
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The set-up for the upside is there, but will the earnings justify?

Shopify is set to report earnings tomorrow, it is expected to report an EPS of $0.16 on revenue of $1.84bn. Currently, its stock is trading at around $77.33 a share. We can see on the weekly chart that it has found some support at $68.01, outlined by the ascending triangle. The chart set-up seems bullish, but of course, this outlook may be ruined by the earnings results. The resistance above can be found at $79.74 and then along the trendline at $82.09. A break above $82.09 would allow investors to eye the $90 mark once again. On the other hand, a break below $68.01 could force a sell-off towards $56-$58. The technical indicators are still mixed into the earnings, suggesting that greater caution needs to take place. The MACD is negative but seems like it is flattening out but the RSI is just positive and rising as it reads 55.

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