Shift4 Payments: What Lies Ahead After Breakout Rejection

Shift4 Payments (NYSE:FOUR) is currently in Phase 7 of its 18-phase Adhishthana cycle on the weekly charts. The stock has struggled to perform for more than 300 days now. To understand why this prolonged weakness has persisted, let's break down the stock under the Adhishthana framework and assess what may lie ahead. 

Analysing Shift4 Payments' Cakra Formation

According to the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4 and 8. This structure, often resembling an arc-shaped channel, usually carries bullish implications. A clean breakout from this Cakra is expected in Phase 9, which marks the beginning of the Himalayan Formation, a powerful bullish sequence.

Shift4 Payments entered Phase 4 back in July 2023 and initially began forming its Cakra as expected, with a clearly defined arc taking shape. However, during late Phase 5 and early Phase 6, the stock started trading above the upper arc of the Cakra prematurely. This behavior is structurally unfavorable, as a valid breakout should only occur in Phase 9.

The market quickly rejected this premature breakout. The stock reversed sharply and fell back into the Cakra arc, a move that coincided with its February 2025 quarterly results and the announcement of its acquisition of Global Blue.

After re-entering the arc, the stock spent some time consolidating. However, toward the end of Phase 6, Shift4 Payments broke below the lower arc of the Cakra, triggering a highly bearish move known as the Move of Pralaya.

As outlined in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."

True to the principles, the stock has since experienced sustained bearish pressure and has already declined by roughly 30% following the Cakra breakdown.

We saw and reported a similar pattern in Linde lately: 

What Lies Ahead

Shift4 Payments is currently only in Phase 7 on the weekly charts. From here through Phase 13, Shift 4 is likely to experience bearishness, sluggish price action, consolidation, and multiple false rallies. Meaningful clarity on a potential reversal emerges only once it enters its Guna Triads in Phases 14, 15, and 16.

Until then, the broader outlook remains weak, and the stock is likely to remain under pressure.

Investor Outlook

Investors considering fresh exposure to Shift4 Payments should avoid the stock for now. With a confirmed Cakra breakdown and a prolonged weak stretch still ahead in the cycle, the stock is likely to trade with bearish and sluggish characteristics.

Adding to this caution, the monthly chart places the stock in the early part of Phase 2, a period that is also associated with consolidation and corrective behavior. Taken together, the structural setup suggests that the current weakness may persist for some time, and patience remains key.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.