GoPro (GPRO) is a classic IPO that initially traded with a lot of hype before ultimately losing its mojo. The stock IPO'd almost 5 years ago and has been in a big slide ever since. However, there's now a big reason for you to put GPRO on your radar, which is that the stock actually made new 52-week highs in May - the first time that has happened in its life! Is the GoPro finally ready to run?
The SCTR for GPRO has just pushed to its highest level since shortly after its IPO, which suggests excellent price strength. Due to the big relative strength pile on the left, the chart does not show a change in relative strength. I like the full stochastic turning up above 50, which is usually a bull market trait. The price action is just under major resistance, but the break and hold above $7.75 looks very good. The solid volume of the last two weeks is very encouraging. Lastly, the PPO is hitting its highest level in four years. All of these indicators suggest there are some good things ahead.
If I shrink the chart to just a couple of years, it looks a lot better; we can see below that the relative strength, which was hidden on the previous chart, is at 12-month highs.
With all of these indicators perking up, it looks like a major trend change is in store for GPRO. I would use $6.50 for a stop if I was trading it.
Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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