Technical Summary: Whatever way you cut it the SHOP chart is a thing of beauty. The stock price has ridden the fundamental growth of its underlying business. The stock provided investors an opportunity in December last year when it broke out of a 4 month consolidation on huge buying volume. The stock has been on an uptrend from the start of 2017 through to May (around the time of our first report). From here it has been in a 3 month consolidation period. After its earnings result the stock gapped up on heavy volume. But the breakout subsequently failed and the stock returned to its consolidation base. From a technical perspecitve we believe that the stock is setting up well to break out of that base and we have highlighted the area in which we believe to be a low risk buying are for the stock. Investors and traders can use a breakout failure back to the base as an area to cut losses. We would like to see the breakout to new highs occuring on above average volume. If the breakout is successful then the stock may run quite fast quite quickly. Often stocks become overextended in these situations and are prone to snapbacks.
