Shopify has burst to new all-time highs this year as the disruptive e-commerce player continues to see a steady stream of business amid the coronavirus outbreak.
For Walmart’s part, the company continues to work on ways to bolster its online sales front. That means taking on Amazon, but also other retailers with a growing omni-channel presence, like Target (TGT) - Get Report and Costco (COST) - Get Report, among others.
This can be a win-win for both Shopify and Walmart, but it’s clear why partnering with the country’s largest retailer is a big win for Shopify. Now investors are wondering, can shares hit a new high?
Trading Shopify Stock
In early April, Shopify stock began sinking after comments from management and by pulling its guidance. Like a tensioned rubber band though, shares soon reverse and ripped higher in the opposite direction.
The stock ran hard in just a few trading sessions, then spent a few weeks consolidating between $600 and $660 (blue box). A post-earnings rally sent shares into the next consolidation zone between $700 and $775, the latter of which Shopify stock is breaking out over on Monday.
With Monday’s move, the stock is reclaiming its 20-day moving average as well, putting it above all of its major moving averages. Short of a temporary breakout last month, Shopify has been consolidating in this zone for more than a month.
The overall rally has been remarkable, with Shopify stock more than doubling from the April low.
If it can continue its momentum, investors will surely have the current all-time high in mind at $844. Above that puts $882.50 in play, which is the two-times range from the March low to the February high.
Over that and investors will focus on $1,000. On the downside, it would be constructive to see recent range resistance near $775 act as support, as well as the 20-day moving average.