Shopify (SHOP) rallied suggesting nest completed

Elliott Wave Forecast Team ElliottWave-Forecast.com

Shopify Inc. is a Canadian multinational e-commerce company in Ottawa, Ontario. Shopify (SHOP) is the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. The Shopify platform offers online retailers a suite of services including payments, marketing, shipping and customer engagement tools.

Shopify ended a Grand Supercycle in July 2021 and we labeled it as wave ((I)). Since then, it entered in a flat correction as wave ((II)). Three swings drop ended at 128.46 as Wave (a). Then market breaks above 164.88 in another 3 swings suggesting a possible flat correction and we labeled wave (b) at 176.49. Down from this price, SHOP built a perfect impulse lower completing a big short at 23.75 and we labeled as wave (c) and also wave ((II)).

SHOP daily chart July 2024

In the last chart, we saw a wave (I) ended at 71.43 high. The market broke below 60.22 indicating that wave (II) had arrived. This wave (II) developed a zig zag correction and ended at 45.50 low. From here, SHOP continued up ending another impulse as wave I at 94.57 high. Then, it did another correction and we called it wave II at 56.31 low forming the nest. We expected to continue up to complete another impulse like wave ((1)) and another correction ((2)) to make another nest until the market decides to resume the rally. The view was valid as the market stays above 56.31 low.

SHOP daily chart November 2024

In the current chart, the market broke the 56.31 low invalidating the last view, but it does not break 45.50 wave (II) low. Therefore, wave II did a double correction structure ended at 48.56 low. The market bounced ending wave ((1)) at 84.37 and pullback to 65.86 to complete wave ((2)) correction. Then, SHOP continued the rally breaking wave I high suggesting that wave III is on its way. The structure looks like an impulse and it should continue higher until wave III is finished. The best strategy for now, it is to buy dips after 3, 7 or 11 swings correction.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

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