SHOPIFY- land gracefully and REFUEL for more HIGH-FLYING ACT

Who doesn't like the high-flying act? Sometimes, the proper rest is needed in order to soar even higher.

Shopify needs a deep pullback in order to draw in more trigger-scary investors who wait on the sideline.

Such parabolic movement is not sustainable with RSI hovers above 70 since early 2017 on the monthly timeframe.

Only one red bar in the last 14 monthly bars... It needs to cool down a bit.

For positional and long-term traders, check my pro & con list below.

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Pro-

Strong CAGR

Dominate the e-commerce platform market by capturing the 31% market share

Growing gross merchandise volume- The value of all products sold by merchants on Shopify’s platform

Growing gross payment value through Shopify payment, creating an more integrated platform

Strengthened the Shopify fulfillment network with the acquisition of fulfillment automation company

Con-

Square partners up with UPS

Overvalued according to financial metrics (EV/EBITDA, P/S, P/E)

High burn rate that prioritizes growth over profitability (Weak EPS)

Negative free cash flow despite not heavily invest in R&D

Comment:

Perhaps, now is the time to scale out... Earning report has never had any correlation with Shopify's share price.

*Largest daily selling volume since $117
*Overheated momentum
*Shallow pullback
*Declining buying volume.

Comment:

Congratz to those who shorted or closed their long positions after the blow-off top around $530-$550!

Trade closed: target reached:

Around $530-$540