GPRO (IDEA)

In GoPro, Inc.  (GPRO 8.14 -0.05 -0.61%) we have multiple signals in place suggesting of an intermediate trend reversal ahead with 20-50% upside.

Firstly, GoPro, Inc. has been trading within a falling wedge formation since early September this year. A falling wedge formation mostly signals the end of a trend and if valid, is followed by a strong and rapid counter reaction to the beginning of the formation. In the case of GoPro, Inc. the upper trendline of this falling wedge formation has been penetrated today (daily chart) and a warning sign was given last Friday (hourly chart) where we have a very similar formation in place. Furthermore, the momentum (RSI) has been diverging vs. price since almost the beginning of this pattern (daily chart) and acts as a serious warning sign that the trend is weak and could likely come to an end soon. Last but not least, the new momentum highs are align with the price action (Hourly and Daily chart) as well as with the latest strength and upside break-out in Nasdaq Composite Index.

One could go LONG at current levels (29.20 or above USD 28) with a risk stop at 26.16 and a profit limit at 37.24 (1 month, ratio 2.50, +27%) / 43.55 (1-3 months, ratio 4.50, +49%).

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