Shopify Inc: SHOP Stock Could Go into Orbit Based on THIS

SHOP StockSHOP Stock: Love at First Sight

There is a Canadian technology company that is creating waves and making a name for itself. It is an e-commerce company that develops software for online and point-of-sale consumers.

Canadian tech companies have captured the hearts of many investors, only to have them broken. Let’s just hope that this time is indeed different, because I am bullish on Shopify Inc (NYSE:SHOP) stock, and I believe that there is a lot of upside in store for this name.

Names like Nortel and BlackBerry Ltd (NASDAQ:BBRY) were media darlings that enriched investors, and many people were praising Canada as the next Silicon Valley of the north. Just as these companies were claiming their dominance, they quickly and relentlessly fell from grace, and broke many hearts and retirement accounts in the process.

Perhaps SHOP stock can once again claim people’s hearts as those names did, without the untimely demise. The SHOP stock chart is bullish, and I may have fallen in love with Shopify stock at first sight.

My infatuation with this name is strictly based on the signals I received from the price charts. I use price charts to discern trends and forecast the future direction of prices. If this makes me shallow, then so be it.

The following chart illustrates the bullish traits that make SHOP stock so attractive.


Chart courtesy of

The above Shopify stock chart illustrates bullish price action. Impulse waves (highlighted in green) are followed by consolidation waves (highlighted in purple). This type of price action has been known to dominate bullish trends, and is the reason why most trends look like a staircase.

The impulse waves match, as it is common for the trajectory and velocity of an impulse wave to equal each other. The consolidation waves, between the impulse waves, serve as a midpoint continuation pattern. These waves can only be translated as bullish, and further upside action is expected.

My bullish view was reaffirmed in May 2016 when Shopify stock generated a golden cross. A golden cross is a bullish signal that is produced when a 50-day moving average, highlighted in blue, crosses above a 200-day moving average, highlighted in red. Traders use this signal to confirm that a bull market is on the horizon. It is not uncommon for the trend to accelerate after this signal is generated.

There is nothing on the SHOP stock chart above to suggest that the trend is anything but bullish.

The following SHOP stock chart illustrates the beautiful price action since inception.


Chart courtesy of

The chart above illustrates that Shopify stock is attempting to break above resistance on a sustained basis. The reason why I am so infatuated with this stock is that a sustained break above this level would involve making an all-time high in price.

All-time highs are a special feat, and I have seen many stocks proceed to hit tremendous heights that I thought were unimaginable, soon after a new all-time was put in. Shopify stock is a fairly new company to go public, so the amount of time the stock has been trading is sparse, but that does not mean that this feat should go unnoticed. On the contrary, this name is not well known and has yet to saturate itself in retail portfolios, leaving a lot of demand yet to be fulfilled.

From a linear perspective, this chart projects a price target of $62.00, but considering that this name has no upside resistance, I believe that much higher prices are possible.

The Bottom Line on Shopify Stock

I am bullish on Shopify stock, and my bias is based on the price chart. My bias will continue to be bullish for as long as the signals garnered from the price chart warrant this bias. If the signals change, so too will my view on SHOP stock. Let’s just hope that if this company does capture hearts like the previous Canadian technology darlings did, the same demise won’t follow.