What price target does the short pitch propose for Shopify after consolidation?

• A. 116
• B. 214
• C. 220
• D. 300

Answer: (A)

When a stock finishes a consolidation, a short pitch typically lays out a downside scenario: the idea is that the price will fail to break out to the upside and instead move lower, often toward a nearby support level or the previous swing low. The price target in that context is the level the stock would reach if the downside scenario plays out, and it’s usually a measured, conservative estimate tied to where the stock might land after a breakdown from the range.

That’s why the best answer is the target that embodies a cautious downward move. It reflects the thesis that the stock won’t resume a meaningful rally after the consolidation and, instead, will drift lower to a known support area. Higher targets would require a breakout and a sustained rally, which doesn’t fit the short-pitch premise after a period of range-bound trading. Extremely high targets imply a bullish reversal, which again contradicts the bearish setup being presented.