GoPro Inc. (NASDAQ:GPRO) shares saw a large gap up Friday morning following earnings.
The company reported first-quarter earnings of 3 cents per share, up from a loss of 34 cents at the same time last year. Sales were reported at $204 million, beating the estimate of $186.69 million.
GoPro was up 6.7% at $11.14 at last check. For more info on why GoPro, Click Here
GoPro Daily Chart Analysis
- Shares of GoPro are forming into what technical traders may call a pennant pattern.
- The stock crossed above the 50-day moving average (green) Friday, and is trading above the 200-day moving average (blue), indicating sentiment in the stock could be turning bullish.
- These moving averages may both hold as a support level in the future.
Key Levels To Watch
- GoPro has been forming into a pennant pattern and is looking to see a potential breakout in the coming weeks.
- The pennant pattern forms as the price is condensed between narrowing highs and lows, then a strong move in either direction typically follows, and the stock continues trending in the same direction as the breakout.
- GoPro has spent more time near the resistance of the pattern than the support area. This hints the stock may be getting ready to break out of the pattern soon and make its next move up.
Bullish technical traders would like to see the stock break out of the pattern on the upward side. A break of the pattern and the stock could see a push higher. If the breakout were to happen, bulls would want to see the stock consolidate before moving up a second time.
Bearish technical traders would like to see the stock start hanging around the support lines of the pattern and eventually break below the support line before potentially seeing a large move.