Shopify Inc: SHOP Stock Is a Rock Star Top Pick for 2017

SHOP StockSHOP Stock: 2017 Top Pick

Shopify Inc (NYSE:SHOP) is the little-known Canadian technology company that has begun to make waves, and SHOP stock could be setting the stage for an epic run that could potentially make it a hot topic of conversation come next year.

My beliefs center around the style I use to analyze potential investments. This style is based on technical analysis, and it uses past volume and price data to discern trends and forecast future prices. I have used this method to create investment strategies for over a decade, and have had great success doing so.

The reason why I am bullish on SHOP stock and believe that an epic run can unfold is the position that Shopify stock currently sits at, as 2016 comes to a conclusion.

The following stock chart illustrates the current position that Shopify stock sits at.



Chart courtesy of

The chart above illustrates that Shopify stock is attempting to break above a horizontal level of resistance on a sustained basis. This level is created by using the previous all-time high that was set in June 2015. The reason why I have been watching this investment so closely is that a sustained break above this level would open the door to much higher prices.

The initial price objective of a sustained close above resistance is $62.00, but considering that SHOP stock has had no upside resistance above this level, I believe that much higher prices are possible. Some of the greatest bull market runs have begun on similar grounds.

The Shopify stock chart above is also instrumental in defining an investor’s risk level. Risk can defined by using the uptrend line. This trend line is created by connecting the troughs on the price chart, as highlighted above.

If SHOP stock were to close below this trend line on a weekly basis, it would suggest that lower prices were set to prevail, and this would effectively eliminate my bullish view on Shopify stock.

The good news is that there has been little to suggest that any bearish price action will occur. The stock chart is littered with bullish price action that suggests that higher prices are set to continue.

The following Shopify stock chart illustrates the bullish price action that supported the current run-up in price.


Chart courtesy of

The above Shopify stock chart illustrates a perfect example of 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 pattern.

A bullish view was first suggested in May 2016 when Shopify stock generated a golden cross. This cross occurred shortly after the first impulse wave completed and a consolidation wave began. 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. This signal is used to confirm that a bull market is on the horizon, and it is not uncommon for the trend to accelerate after this signal is generated.

SHOP stock is currently in the process of completing a a consolidation wave, and a bullish breakout would mean that a new impulse wave was set to develop. This impulse wave would take the price above resistance, and would set the wheels in motion that would make SHOP stock a rock star performer in 2017.

Bottom Line on SHOP Stock

I am bullish on Shopify stock, and I expect great things in the new year. These expectations are warranted because there is nothing on the SHOP stock chart that would suggest that the trend is anything but bullish. Perhaps it is time for another Canadian technology company to capture the hearts of investors.