Shopify (NYSE: SHOP) is one of the best performing technology stocks since its IPO back in 2015. As electronic commerce boomed in recent years, SHOP saw an enormous gain in value up to 2900% punting the stock as one of the fastest growing companies. Despite the majority of stock market being down in 2020%, SHOP was able to resume it’s bullish trend and it’s already up 80% Year-To-Date.
SHOP decline back in February was a technical 3 waves correction that faced the entire market and a major low was established on March 13 from where the stock started the next leg to the upside. Based on Elliott Wave Theory, the initial cycle since IPO unfolded as an impulsive 5 waves advance followed by a 3 waves pullback then the stock managed to break the previous peak. Consequently, Shopify opened a new bullish sequence from 2015 low suggesting another impulsive 5 waves advance to take place which a minimum target area at equal leg $899 – $1040 and a potential extension toward 1.618% Fib extension area $1265.
The impulsive nature of the move is allowing Bulls to maintain control over the trend until it reaches the next target and providing buyers with opportunities to join then main bullish trend during pullbacks in 3 , 7 or 11 swings.
SHOP Weekly Chart
