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Trade of the Day: GoPro Inc (NASDAQ:GPRO)

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To receive further information on this GoPro Inc (NASDAQ:GPRO) trade, sign up for a risk-free trial of Profit Scanner today .

GoPro may be showing flashes of strength, but the short- to intermediate-term technical picture is dark.

Profit Scanner , powered by Recognia, has uncovered a slew of bearish signals that started on March 18, and they tell traders that GPRO still has further to fall.

Momentum is waning in GPRO and the stock price made a bearish cross of the 50-day moving average. What's more, a bearish Symmetrical Continuation Triangle appeared on GPRO's chart, and it carries a target that's some 66% lower from current levels.

In simple terms, this pattern tells traders that GPRO's price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend.

As shown above by the red triangle in the chart, a bearish Symmetrical Continuation Triangle features two converging trendlines; the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. The pattern will display two highs touching the upper (descending) trendline and two lows touching the lower (ascending) trendline.This bearish pattern gets confirmed when the stock's price breaks out of the triangle formation to close below the lower (ascending) trendline.

Based on historical pricing, Profit Scanner expects this bearish Symmetrical Continuation Triangle to take approximately 79 days to complete. The pattern carries a downside target price range of $6.00 - $7.00.

GPRO shares are likely to encounter resistance at around the $13.00 level, though traders who elect to short GPRO must be aware of a support floor just shy of $11.00.

Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner's technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.

The post Trade of the Day: GoPro Inc (NASDAQ:GPRO) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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