Why GoPro Stock (GPRO) Is Set For A Pullback

James Bartelloni

Wow, GoPro (GPRO) has been another amazing rocket ship post-IPO stock. Shares of GoPro stock have been on a continuous ride higher since the IPO date. But investors also need to be careful when stocks push too far too fast. Just the other day GPRO reached up as high as $96.45 on the unveiling of 3 new GoPro cameras. This surge higher has put the stock price near my calculated pattern resistance. And if this prove to be valid resistance, then GoPro stock may be getting ready for a tumble.

Geometry tells us that 98 will be formidable resistance and that a pullback should occur in and around this area. The move is extended, somewhat parabolic and a lot of geometry is coming into play for. Depending on your style and time horizon, it may be prudent to book some profits OR expect it to pullback into the vicinity of the previous wave 4.

That being said, it sure looks like this entire wave has subdivided and therefore this pullback should be BOUGHT for another move to new highs. I will provide an update IF a correction begins to take shape.

GoPro Inc. (GPRO) Daily Stock Chart

gopro stock chart elliott wave analysis gpro

 

One last thing. And it’s important. GoPro stock could very well BLOW THRU 98 without a whimper. Remember, this is just a pattern. Sometimes they work and sometimes they don’t. But they do give investors a means for managing risk.  Thanks for reading.

Follow Bart on Twitter:  @BartsCharts

No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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