Certainly... agreed. My chart is a little different but end up at that price too... I would really love to see lower but well see... I am short a very small amount of shares forever! Looking forward to covering but I wont be a buyer.... I am not a fan of shop. NO REASON THIS PRICE SHOULD EVER HAVE BEEN THIS HIGH either. It's really disgusting what they did to the market.....
VSPuzzler
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It could bounce off the SMA 200. This scares me
goledger
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Would such a sell-off from current levels require an earnings miss?
sales growth less than trend?
or would it just be in response to the the Head and Shoulders pattern?
Gpap90
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It might not... this is just my view about it and I am nobody :) think for yourself always!!!
Gpap90
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Answer yourself this: why did shop was at $1500 with a p/s multiple > 50 ??? For the same reason will go to a multiple < 20
Shop has been weak ever since hitting $1499, and will more than likely be weak after the next earnings release.
But I'm not sure another $500 sell-off will be sparked merely by a technical chart pattern (or violation of same).
Yes it can drop like a rock from current levels ... but more than likely losing another 40% of market cap sales growth miss, additional loss of key personnel, or a significant market event to the downside.
Short-term movement is unpredictable, but leans weak, technicals favor more selling. Longer term, I like SHOP, but I'm substantially concerned near-term.
Gpap90
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@goledger, totally agree it wont go down on it's own probably will follow general market correction imo but what i see here is a steady and slow h&s forming that's all