Oversold, shares of Shopify (SHOP) could soon bounce back.
At the moment, the SHOP stock is sitting at strong support dating back to May 2022. It’s also oversold on RSI and Williams’ %R. In fact, the last seven times the SHOP stock tested this support, it bounced back to about $40. We believe it could happen again.
Helping, Al Gore’s Generation Investment Management firm just increased its position in the SHOP stock, as well. In the second quarter, the firm bought about 7.4 million shares of SHOP, raising its total investment to 7.5 million SHOP shares. In addition, in August, Atlantic Equities upgraded SHOP to an overweight rating, with a price target of $46 a share.
From a current price of $30.98, we’d like to see it test $40 again, near-term.