Amazon Purge of Small Suppliers May Fuel Shopify Surge
Technicals are flashing a warning sign though
Signage is displayed at the Shopify Inc. office in Waterloo, Canada.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Shopify Inc. hardly needs another reason to rally, with its shares doubling this year to a record and Kylie Jenner using its e-commerce tools to sell her wildly popular cosmetics. But Amazon.com Inc.’s impending purge of small suppliers may send a few more merchants its way. Moving averages show the Canadian company has momentum on its side though its 14-day relative strength index has it approaching overbought territory, a technical signal that may indicate the advance may run out of steam.