Can GoPro Manage A Bounce Off Its All-Time Lows?
From Corey Rosenbloom: GoPro is an interesting stock at a critical pivot point that grabs our attention. Let’s take a look at GPRO, plot the key level, highlight the divergences, and plan for the next swing.
We’ll start with the Daily Chart:
Shares plunged at the beginning in October, losing half their value into December where we are now.
The past can’t be changed, so it’s up to what happens right now at the juncture between $8.50 and $9.50.
We’re seeing a positive momentum divergence accompany two days of higher (bullish) volume at the lows.
Could GoPro shares be mounting a future breakout? Divergences at support tend to precede breakouts.
The future plan would be to trade an impulsive breakout above the $9.50 per share level, targeting the falling 50 day EMA near $10.50.
That’s not much but it’s a 10% potential swing trade.
However, aggressive traders can fight this bullish future with a bearish plan to swing down away from the $9.50 overhead resistance/supply back toward the lows.
We can see the divergence and our future plans clearer on the Intraday Chart:
Here we see the triple-swing positive momentum divergence into the $8.50 level where aggressive traders could have played the quick pop $1.00 higher into $9.50.
A second retracement near $9.00 gave a safer retracement entry ahead of today’s second pop back to $9.50.
The NEXT play will be the immediate departure from $9.50 – a bearish victory (and short-term trade) beneath (which is already occurring) or a bullish future potential breakout (and open air toward $10.50) if above the $9.60 threshold.
Which will it be? Watch – or trade – and discover!
GoPro Inc (NASDAQ:GPRO) shares fell $0.15 (-1.66%) to $8.86 in Friday morning trading. Year-to-date, GPRO has declined -51.03%, versus a +10.5% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.
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