Don't Ignore This Chart!

GoPro (GPRO) Breaks Free Of Its Mount

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GoPro (GPRO) has been sliding in investor sentiment for a year. After falling below the 200 DMA over a year ago, GPRO continued to splash around in the dirt. Today it seems to be launching out of a base as we head towards the retail season for youth with Back to School. The SCTR was asleep for the last 9 months and started trending up in July. I like to look at stocks where the SCTR is consistently poor and then starts to wake up. There can be a change in investor sentiment starting to show and this can lead to explosive moves higher. While the change is hard to see on the Relative Strength line in Purple, it is very obvious on the SCTR score that something is changing.


With a nice pattern breakout, we can also see the volume soaring and the MACD above zero for the first time in a long time.  Twitter is another chart showing similar chart patterns. These can work out very well and your risk is defined by the breakout line.

Good trading,
Greg Schnell, CMT, MFTA

 

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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