Shift4 Payments (FOUR) has been stuck in neutral for more than 300 days, and according to one technical framework, the stock's troubles might be far from over. Let's walk through what's happening here and why the chart watchers are concerned.
The Cakra Formation and What Went Wrong
Under the Adhishthana analytical framework, Shift4 Payments is currently navigating Phase 7 of an 18-phase cycle on the weekly charts. Here's where things get interesting: stocks typically form what's called a Cakra structure between Phases 4 and 8. Think of it as an arc-shaped channel that usually signals bullish potential down the road. The textbook move is for a stock to break cleanly out of this Cakra in Phase 9, which kicks off what's known as the Himalayan Formation, a powerful bullish sequence.
Shift4 Payments entered Phase 4 back in July 2023 and started building its Cakra formation just as expected, with a well-defined arc taking shape. But then the stock jumped the gun. During late Phase 5 and early Phase 6, it started trading above the upper boundary of the Cakra prematurely. That's not how this is supposed to work. A legitimate breakout should wait until Phase 9, not charge ahead early.
The market didn't buy it. The premature breakout got rejected hard, and the stock reversed sharply, falling back inside the Cakra arc. This reversal happened to coincide with the company's February 2025 quarterly results and the announcement of its Global Blue acquisition. After tumbling back into the arc, Shift4 spent some time consolidating, trying to find its footing.
But the troubles weren't over. Toward the end of Phase 6, the stock broke below the lower boundary of the Cakra entirely. This is what the Adhishthana framework calls the Move of Pralaya, and it's about as bearish as it sounds.
The Move of Pralaya: Not Good News
According to the principles laid out in Adhishthana: The Principles That Govern Wealth, Time & Tragedy, when a stock breaks the Cakra on the downside, consolidation typically drags on into what are called the Guna triads. The move that follows tends to be significant, with selling pressure running extremely strong. That's the Move of Pralaya in action.
And sure enough, Shift4 Payments has lived up to the framework's predictions. Since breaking down from the Cakra, the stock has experienced sustained bearish pressure and has already declined by roughly 30%. That's a substantial move, and it fits the pattern of what happens when a Cakra breakdown occurs prematurely in the cycle.
What's Next for Shift4
So where does this leave Shift4 Payments now? The stock is only in Phase 7 on the weekly charts. From here through Phase 13, the outlook calls for more bearishness, sluggish price action, consolidation, and multiple false rallies. In other words, don't expect a quick turnaround.
Meaningful clarity on a potential reversal doesn't emerge until the stock enters its Guna Triads in Phases 14, 15, and 16. Until then, the broader outlook remains weak, and the stock is likely to stay under pressure. That's a long stretch of uncertain territory ahead.
Should Investors Jump In Now?
The short answer: probably not. Investors considering fresh exposure to Shift4 Payments should exercise caution here. 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 for some time.
Adding to the caution, the monthly chart places Shift4 in the early part of Phase 2, a period that's also associated with consolidation and corrective behavior. When you look at both the weekly and monthly positioning together, the structural setup suggests that the current weakness may persist for quite a while. Patience is key here. Sometimes the best move is to wait on the sidelines until the picture clears up.
For now, Shift4 Payments appears to be in for a bumpy ride, and the technical signals aren't offering much reason for optimism in the near term. The framework that called the breakdown is also signaling more pain ahead before any meaningful recovery takes shape.