Hello There,

welcome to my new analysis of SHOP from a weekly timeframe perspective. In the current stock market situation, some stocks form pivotal bearish setups which are likely to turn into bearish meltdowns, providing profitable short opportunities in the market. One of them is SHOP. The stock is forming an interesting formation which I recently spotted, providing the base for a short position to profit from falling prices.

When looking at my chart now, we can see how SHOP is forming this gigantic ascending wedge formation. Within the wedge, it has already completed the wave count. Now it broke down below the lower boundary with a massive bearish move. Below the lower boundary, it is now forming the bear flag formation, confirming the breakout and setting up the next bearish leg towards the downside.

This breakdown activated the lower target zones as seen in my chart. Given the current setup, the next bearish wave is likely to emerge in the near future. If the bearish momentum should accelerate and continue to accelerate after the target has been reached, further downside is likely to be expected. When the bearish volume increases, this will additionally confirm the bearish downside scenario.

In this manner, thank you a lot for watching!
The support is highly appreciated.

VP