Shopify (NYSE: SHOP) surged higher this year after a strong Breakout of a Bullish Flag which allowed the stock to rally almost 200%. Despite the 40% correction that took place since August, SHOP managed to recover and it’s currently retesting the previous peak aiming for a break to new all time-highs.
The short term cycle taking place since November low is currently in progress as the stock is looking for a 4th wave pullback which can find buyers in 3 or 7 swings around extreme area $382 – $368 before resuming the rally or bouncing in 3 waves at least.
SHOP is expected to remain supported above $281 as the aggressive view is suggesting a nest taking place since IPO and consequently the stock can aim for a higher target at equal legs area $573 – $642 which will allow a 5 waves impulsive structure to take place next year within the cycle from December 2018 low.
The alternative view would suggest a lesser aggressive view with the stock ending the 5 waves move since IPO around $471 area resulting on a larger 3 waves pullback to take place next year before buyers show up again looking to start a new cycle to the upside as the overall structure for the stock remain bullish.
