CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Shopify

Market Opportunities - 29/06/2022

29 June, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Shopify (#SHOPIFY) weekly uptrend opportunity based On 1 Lot Calculation:

GLOBAL E-COMMERCE:

  • MARKET SIZE (EXPECTED: $5.55 trillion in 2022): The e-commerce (online sales) market is expected to total $5.55 trillion in 2022, accounting for 21% of total retail sales ($26.42 trillion). Two years ago only 17.8% of sales were made online.

  • MARKETS SIZE (EXPECTED: $7.3 TRILLION IN 2025, UP 30% FROM 2022): The global e-commerce market is forecast to be over $7.3 trillion in 2025, compared to 2021’s $4.921 trillion. E- commerce worldwide is expected to represent 24.5% of all global sales IN 2025, up from 19.6% in 2021 and 17.8% in 2020.

  • MARKET SHARE BY COUNTRY: China is estimated to claim 52.1% of the global market, USA with 19%, UK with 4.8% and Japan with 3.0%. Rest of the world covers 21.1%.

U.S. E-COMMERCE:

  • MARKET SIZE ($767 billion): The U.S. e-commerce market was $767 billion in 2021. The US market grew at a compounded annual growth rate of 12.5% per year since 2017.

  • MARKET GROWTH POTENTIAL (TO INCREASE ITS GLOBAL SHARE TO 23.6% BY 2025 TO $1.3 TRILLION FROM CURRENT $767 BILLION): U.S. e-commerce value is expected to grow at a strong average growth rate (annually) of 11.6% between 2021 and 2025 to reach $1.3 trillion in 2025. That would be 23.6% of estimated global e- commerce sales of $7.3 trillion in 2025.

  • MARKET SHARE: Amazon is the largest online retailer in the U.S. with 41% market share. Shopify is second, capturing 8.6%, while Walmart covers 6.6% of the US E- commerce markets.

SHOPIFY (ANALYSIS AND EVENTS)

  • THE COMPANY: Shopify provides a cloud –based commerce platform. The company offers a platform for merchants to create an Omni-channel experience that helps showcase the merchants brand.

  • EVENT (STOCK SPLIT: 10 to 1): EFFECTIVE ON (WEDNESDAY) JUNE 29, 2022. According to MarketWatch, investors view stock splits as a sign of confidence by management, because splits happen more often in stocks that have bullish momentum behind them. Splits also increase liquidity by making shares more accessible to a wider range of investors, something Amazon acknowledged when it announced its split.

STATISTICS: Since 1980, the shares of companies that do stock splits are typically up 25% a year later, compared to 9% for the broader market, according to a recent study by Bank of America.

  • PERFORMANCE AFTER STOCK SPLIT ANNOUNCEMENT, PRIOR TO ACTUAL SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):

Apple (STOCK SPLIT: 7-1 Announcement April 23, 2014): Apple’s stock price increase around 23% from the announcement of the split until the actual execution of the split on June 9, 2014.

Tesla (STOCK SPLIT: 5-1 Announcement August 11, 2020): Tesla’s price appreciated around 60% from its announcement to the actual stock split date on the 31st of August 2020.

Apple (STOCK SPLIT: 4-1 Announcement July 30, 2020): Apple’s price increased around 30% since its split announcement on 30th of July 2020, until the effective date 31st August 2020.

NVidia (STOCK SPLIT: 4-1 Announcement May 21, 2021): Nvidia witnessed a percentage price increase of around 33% between its announcement date and the effective date of the split on July 20, 2021.

*Please note that past performance does not guarantee future results

  • STOCK PERFORMANCE AFTER STOCK SPLIT (SOURCES: YahooFinance, Bloomberg, Fortrade MT4):

Apple (STOCK SPLIT: 7-1 effective June 9, 2014): 3 Months: +8.69%. 6 Months: +19.26%. 12 Months: +37.00%

Tesla (STOCK SPLIT: 5-1 effective August 31, 2020): 3 Months: +28%. 6 Months: +53%. 12 Months: +65.91%

Apple (STOCK SPLIT: 4-1 effective August 31, 2020): 3 Months: -4.5%. 6 Months: +2.11%. 12 Months: +22.00%

NVidia (STOCK SPLIT: 4-1 effective July 20, 2021): 3 Months: +17.60%. 6 Months: +30%. 12 Months: -

*Please note that past performance does not guarantee future results

  • PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 82% FROM ITS ALL- TIME HIGH OF C$213.982 TO TEST ITS LOWEST RATE SINCE NOVEMBER 2019 (C$42.17). Shopify was last trading around C$43.76, and If a full recovery follows recent all- time highs, the stock could see an upside of around 388%.

  • ANALYST OPINION: Credit Suisse forecasts C$68. Wells Fargo forecasts C$69. Deutsche Bank Forecasts C$64.

SHOPIFY(#SHOPIFY), June 26, 2022
Current Price: 43.76

Shopify

Weekly

Trend direction

UP

Resistance 3

82.00

Resistance 2

74.00

Resistance 1

60.00

Support 1

36.00

Support 2

30.00

Support 3

25.00

Example of calculation based on weekly trend direction for 1 Lot1

Shopify

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $2

2,969.17

2,348.01

1,260.97

-602.53

-1,068.41

-1,456.63

Profit or loss in €2

2,833.53

2,240.74

1,203.36

-575.01

-1,019.60

-1,390.09

Profit or loss in £2

2,451.84

1,938.90

1,041.26

-497.55

-882.25

-1,202.84

Profit or loss in C$

3,824.00

3,024.00

1,624.00

-776.00

-1,376.00

-1,876.00

  1. 1.00 lot is equivalent of 100 units

  2. Calculations for exchange rate used as of 15:25 (GMT+1) 29/06/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

  • You may wish to consider closing your position in profit, even if it is lower than suggested one

  • Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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