Shopify has been in a clear downtrend since October, and the technical structure explains why. On the daily chart, we can identify a head and shoulders formation marked with green rectangles. It is not a perfect textbook example, as the left shoulder lacks symmetry, but the underlying principle remains valid. The pattern reflects distribution and weakening demand at higher levels.
The key technical moment came when price broke below the blue neckline of the formation. That breakdown confirmed the shift in structure from bullish to bearish and initiated the broader decline. The latest development reinforced this negative outlook. Shopify broke below the orange horizontal support around 129 dollars, a level that was technically important throughout 2025.
After that breakdown, price retested the 129 area from below. The former support acted as resistance, and the rejection confirmed bearish control. That retest is technically significant because it validates the breakout and reduces the probability of a false move.
As long as Shopify trades below the orange resistance zone around 129, the sentiment remains clearly negative. The structure favors continuation to the downside, and any short-term rebounds should be treated as corrective unless the stock manages to reclaim that broken support decisively.