We haven't reviewed the price action of GoPro Inc. (GPRO) since the beginning of the year. In the subsequent months GPRO has traded down into a March low, but since has stabilized to trade sideways. Earlier this month GPRO gaped higher on heavy volume.
Do the charts look better? Are the indicators more constructive? Let's check our charts below.
In this daily bar chart of GPRO, above, we can see a drift lower from November to June. Prices don't go any lower in July and we have a gap to the upside earlier this month. Prices are above the 50-day moving average line and the 200-day moving average line, but the slope of the 200-day is still down and the 50-day slope only just turned up. The daily On-Balance-Volume (OBV) has been neutral from November but it recently turned up, signaling more aggressive buying for the first time since September. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly chart of GPRO, above, we needed to go to a log-scale to display some amplitude as prices have traveled a long distance since 2014. Prices have rallied above the still-declining 40-week moving average line. The weekly OBV line shows a small improvement after months of minimal activity. The MACD oscillator is trying to get above the zero line for an outright go-long signal.
Bottom line: If you can afford to risk a close below $8 I would trade GPRO from the long side, getting more aggressive on a close above $11.