Shopify

Shares of Shopify (SHOP - Get Report)  were up as high as $338 on Thursday, but closed higher by just 21 basis points at $328.01. Still, Shopify stock logged new all-time highs and added to its monstrous gains over almost every time frame.

Shares are up almost 9% this week, 21% this month, 64.5% over the past three months and a whopping 140% so far this year. Are you kidding me? Should Shopify stock eclipse $356, it will become a triple from its December lows.

According to some analysts, that's exactly what they're expecting. In fact, that may only be the start. Baird analysts upped their price target to $360, while analysts at Rosenblatt Securities raised their target from $295 to $395, which implies 20% upside from Wednesday close.

All of this comes after the company's recent Unite investor day earlier this week, which laid out a growth roadmap. Analysts and investors like the plan, as shares scream higher in response. Luckily for Action Alerts PLUS members, the group is long Shopify stock and they too are happy about the company's recent news. From the AAP team:

"We view the news as an incremental positive that once again demonstrates Shopify's ability to help merchants of all sizes operate more efficiently...We believe [these updates] truly illustrate why the Shopify platform is so critical to e-commerce operations and are highly material to any smaller e-commerce businesses built on the Shopify network."

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Trading Shopify Stock

Daily chart of Shopify stock.
Daily chart of Shopify stock.

With Shopify stock, there's good news and bad news. The bad news? Investors who didn't buy in December or January have missed a lot of gains along the way. The good news is that Shopify has done so well over the past six months that investors have had plenty of time to hop aboard.

Plus, the setup for when to hop on board has been pretty clear.

Since January, tests of the 20-day moving average have been pretty opportune times to buy. The last trigger for this setup was around $263 at the start of June, almost $70 per share below current prices. Eventually that trend will end, but bulls are unlikely to give up on it until they're proven wrong.

On the flip side, channel resistance (blue line) has kept each Shopify stock rally in check. Perhaps surprisingly, the stock has only become overbought a few times in 2019. Each time we've seen the relative strength index (RSI) creep north of 75, we've seen a check-back trade down the 20-day (purple arrows).

Will it play out again? We'll find out soon enough.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.