Shopify Stock Could Rally Off Ample Support

Core Insights - Shopify Inc (NASDAQ:SHOP) stock has retraced from multi-year highs and is currently testing potential support at the 30-day moving average, which previously served as resistance earlier in the year [1] - The stock level of $139.68 aligns with double the equity's April lows and is approximately 10% below its post-earnings peak, indicating a supportive trend over the past week [1] - The price of $137.70 reflects an 8,000% return from the security's initial public offering (IPO) price, following a 10-for-1 stock split [1] Analyst Sentiment - There remains significant pessimism surrounding Shopify, with 20 out of 47 analysts maintaining a "hold" or worse rating, suggesting potential for upgrades [2] - Short interest is gradually decreasing from an 18-month high recorded in June, indicating a shift in market sentiment [2] - A notable number of overhead calls at the 145- and 155-strike prices expired recently, which may influence future trading dynamics [2] Options Activity - The recommended October call option has a leverage ratio of 7.6, indicating that it will double with a 13.1% increase in the underlying security [2]