Shopify (SHOP) extended its gains in its latest intraday trading, supported by positive signals from the RSI indicators. However, we note that these indicators have reached extremely overbought levels, signaling a rapid weakening of the positive momentum surrounding the stock. This pushed the price to collide with the resistance of its previous 50-day SMA, while the stock remains affected by having previously broken a major ascending trendline in the short term.

Therefore we expect the stock to decline in its upcoming trading, as long as it remains below the resistance level of $159.00, targeting the pivotal support level of $134.75.

Todays price forecast: Bearish