Shopify sharpens decline - Analysis - 06-05-2022

Shopify's stock tumbled 14.91% in the last session, settling at 413.09, with trading volumes surpassing 11.3 million shares, amid the dominance of the main downward trend in the short term, with negative pressure from the 50-day SMA, while the RSI reached overbought levels. 

The stock declined after reporting a loss in the first quarter as it acquires the Deliver Inc company in a $2.1 billion deal.

Therefore we expect more losses for the stock, targeting the pivotal support of 307.67, provided the resistance of 510.22 holds on.

Expected trend for today: Bearish