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Fan Yang

GoPro (GPRO) - Stalking the Recovery Attempt

Last week, we looked at GoPro (GPRO) and noted that it was waiting for a breakout from a narrow range. Indeed, price started to jump up at the end of last week, which reflected a bullish recovery attempt that followed a better-than-expected earnings report. 

GoPro Earnings Transcript (seekingalpha.com)

GoPro (GPRO) Daily Chart

(click to enlarge)

Pullback, Anticipating Support:
- As we can see on the daily chart, price is already retreating before being able to tag 11.
- While earnings and the subsequent reaction were positive, the overall price action is still within the context of a long-term downtrend. 
- But maybe within this downtrend, there could be a period of several weeks to even months of bullish correction.
- Well, let's monitor this pullback.
- If price gets back into the 8.60-9.00 area, where I believe there should be support if GPRO is indeed bullish in the short to medium-term.
- Also, the RSI should now hold above 40. A break below 40 reflects a market in sideways consolidation, not a bullish correction.
- If GRPO passes the test and holds above the 8.60-9.00 area, I would anticipate upside risk towards 14.00.