GoPro (GPRO) has been a big loser for stubborn longs over the past three years, but if you never bought GPRO before this year, the price action over the past nine months may get you to consider the long side. So strap on your device and take a look at these charts and indicators.
In this daily bar chart of GPRO, below, we can see an interesting pattern when you compare the price action to the daily On-Balance-Volume (OBV) line. Prices generally move lower from November to July, or at least to March if you focus on the lows more than the highs. The OBV line in this same time period moves mostly sideways, suggesting that sellers of GPRO are really not pressing the downside.
There is a period of rising OBV data in March and April and another one in August and September so far. In early August, prices gapped above the 200-day moving average line and now GPRO is above the rising 50-day line as well as the flattening 200-day line.
The gap to the upside and heavy volume the other day indicate that buyers can return to this name in force. The Moving Average Convergence Divergence (MACD) is the most positive it has looked in the past 12 months.
In this weekly chart of GPRO, below, we can see prices are above the flattening 40-week moving average line. We used a log-scale for this chart because of the tremendous distance that prices moved the past three years. The weekly OBV line made its lows way back in early 2016 and shows a positive bias since. The weekly MACD oscillator is almost above the zero line for an outright go-long signal.
This Point and Figure chart of GPRO ignores gaps and volume. A Point and Figure chart only looks at price reversals and ignores small "jiggles." This chart projects an upside price target of $13.79.
Bottom line: GPRO could see some more sideways trading in the near term before renewed strength. Consider going long around $10 and risk a close below $9 looking for gains to around $14.
