Last month, an AI trading robot generated a 7% growth for SHOP.
Our robot factory's top-performing AI trading robot, which can be found at Day Trader: Medium Volatility Stocks for Active Trading (TA&FA), produced a 7% return for SHOP during the last month.
Last month, an AI trading robot generated a 7% growth for SHOP. However, the current market analysis suggests that the stock may be headed for a correction. On March 31, 2023, SHOP broke above its upper Bollinger Band, which is a technical indicator used by traders to measure a stock's volatility and potential price movement.
Breaking above the upper Bollinger Band is usually considered a bullish signal, indicating that the stock is overbought and likely to continue its upward momentum. However, the fact that the stock has broken above the upper band means that it may be due for a pullback soon. As the stock moves back towards the middle band, traders may want to consider selling the stock or exploring put options.
The A.I.dvisor, which is the AI trading robot responsible for the 7% growth in SHOP last month, has looked at 51 similar instances where the stock broke above the upper band. Out of these instances, the stock fell afterwards in 40 cases. This puts the odds of success for a bearish trade at 78%.
It is important to note that while technical analysis can provide valuable insights into a stock's potential movement, it is not a foolproof strategy. Traders should always consider other factors, such as market conditions, company news, and economic indicators, before making a trading decision.
While the AI trading robot generated impressive growth for SHOP last month, the current technical analysis suggests that the stock may be headed for a correction. Traders should consider selling the stock or exploring put options as the stock moves back towards the middle Bollinger Band. With a success rate of 78% in similar instances, it may be worth considering a bearish trade. However, traders should always exercise caution and do their own research before making any trading decision.
SHOP sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for SHOP moved above the 200-day moving average on October 07, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHOP advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
SHOP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 268 cases where SHOP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SHOP moved out of overbought territory on September 27, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SHOP as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SHOP turned negative on October 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHOP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SHOP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.099) is normal, around the industry mean (30.698). P/E Ratio (781.900) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (1.291) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (14.347) is also within normal values, averaging (55.771).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of eCommerce website that allows customers to sell online by providing software to create an online store
Industry PackagedSoftware