GPRO Heading HigherChristmas should be the catalyst to life go pro to old highs. I think this stock can be managed well and I am looking at FEB and JULY call options with high OI and volume. Stock purchase is good also, this stock will sell a lot of cameras for Xmas and if it gets it strategy right long term could be viable in the social media content play.
Options are expensive on spreads so look for tight spreads and if using options I use a 20% risk to 40% plus gain.
GPRO trade ideas
GPro bear call12/12/14 per plan above, GPRO appears more bearish than bullish. Check marks for bear call spread. #1 closed below support. #2 Volume increased #3 Got more than 10% for exactly 2 weeks. #4 EMA’s have crossed bearish. #5 Got a retest gap today on the hourly. We did retest the EMA’s on the hourly and begin to fail. #6 It’s nicely above the prior candles and previous resistance. #7 No divergences and stock is nicely inside the bottom Bollinger band. #8 Spread is above the 100 simple moving average. #9 New black crow (which confirmed bearish trade) on 12/10.
I will not even LOOK At this spread, or REMOTELY worry about it unless we get a gap up that traps many people on the hourly and daily and we begin to close above $69.
How the Hero Lock Itself Up Into A SELL SELL SELLGopro (NASDAQ: $GPRO) is down 28% since hitting a peak in the first week of October. A lock up withdrawal of 5.8M to start a charity was a signal that more "downside" was to come. On December 23, just about every share remaining in the lock up (borrowed money) will be made public, thus flooding the market with supply; driving the price down even further. Lean into the Puts two months out. Once Earnings is over, there might be a valuation adjustment to set a fair market value on the market. I'll close when I see a peak gain at 100% in profits. But til then I'm Bearish with a Full House Of Puts, so far in my favor. Read the article in the Business Insider for an explanation on borrowing for shares.
GPRO to release consumer drones ($500-$1000 ea)"GoPro Inc. is developing its own line of consumer drones to expand from its core business of making wearable video cameras popular with surfers and other sports enthusiasts, according to people familiar with its plans.
The company plans to start selling multirotor helicopters equipped with high-definition cameras late next year, aiming for a price tag between $500 and $1,000, according to these people." - Article: online.wsj.com
With something along these lines being developed and released into the public, depending on the estimated costs on each drone they might be able to get enough momentum to bring prices back up between $85-$95.. though at the same time if the development is a total fluff like the Phantom Drones than we can easily see prices retrace back down to $51.65
Resistance Becomes Support & Support Becomes ResistanceTrend lines are a great way to invest. That is only my opinion of coarse.
This chart is a 60 minute chart so remember the trend lines may not last as long as those on daily or weekly charts. But horizontal lines of support & resistance can last for a very long time.
Take a look at the blue horizontal line. You can see that this $79ish level has been a place to take notice since September of this year. Today is no exception. GPRO ran up on the drone news and has now stalled at the horizontal line. This is not coincidence. This is the way support & resistance & the markets work.
Anyone who doesn't think the hype will last probably shorted around $79ish. All I can say to them is "be careful". Anyone who thinks the rise in GPRO's price will continue should just realize that there will be some turbulence around this $79 level. Not to mention that GPRO is up over 5% on the day...
Let me also point out that the green uptrend (UT) line and the blue horizontal line will intersect by Monday. If you want to stay long, GPRO should stay above the UT line. If you are already making money, you have the luxury of making minor changes to the UT line like I suggested yesterday. But when you are in a new trade, you can't allow more loses than you were willing to take when you began the trade.
If you are thinking short is the right way to play GPRO then you have two lines of reference.
1) If GPRO really is a short, it can't close above the $79ish level.
2) If GPRO really is a short, it should close below the green UT line.
The Trend Is Your Friend... Until Its Not. Good Luck and Happy Thanksgiving.
So you want to Go Pro ???GPRO just recently offered a secondary. The weakness of a secondary can be a good time to jump in. GPRO is perking up today and has entered the gap from the secondary. If it fills the gap it has to cover 4 more points or 5%. How quickly will it happen? You never know with GPRO...
I am willing to admit that the easiest money has already been made from $71ish to $75ish. But there could be more on the horizon. The break of the red DT line was your hint that the short trade may be over. Now the green UT line is in charge. A long investment here is prudent until the price of GPRO closes below the green UT line. $75ish, $79ish, and $84ish are places to look for a bit of resistance.
Remember, when GPRO closes below the green UT line, you should take your profits (or losses) & run. Good Luck!
After hours edit -
1) GPRO did close below the green UT line. If you just started a long position you should be out of the trade.
2) If you went long before today, feel free to adjust the green UT line to accommodate today's candles. $73.25 should be your line in the sand so you still have some profits left if / when you get stopped out.
GPRO tells me i don't always winPerhaps after a few wins in GPRO consecutively, GPRO gave me a overconfident knock on my head two days consecutively :-)
I long it @76.99, price did break out and formed a DOJI three trading days ago, but the following day a big down bar swiftly offset the DOJI, when the DOJI at 82.08 was crossed, i took half of my little profit at 81.99, anticipating the next day price would break back UP.
Instead price GAPPED down yesterday and i exited my remaining half in LOSSES at 73.97 when that bullish engulfing that i went long got VIOLATED!
Let's see whether it is in triangle pattern or conforming to red downtrend channel
I hope you are not caught in this
Capitalized on Failed H&S, 10-20% success rateFollowing up with my last aggressive trade on buying when price of GPRO gapped down and fell below the neck line
4 days ago. 1st, as you can see from my last post the channel that i've drawn isn't so clear as this one.
Still, the falling knife hit my long triggered @S1 of that day which is 65.21.
Knowing that price 100% will go lower to clear up all the bulls (who felt the pain and had to cut loss), i purposely put in another long @63.33 which is S2 to average up. But the lowest it went that day was only 64.74.
Took handsome profit when market open today, sold 9 contracts of call @81, left 1 call options to ride whatever trend.
P.S. I am willing to take initially loses every single trade i initiated.
GOPRO - Still time to short - UpdateIt seems that Gopro has resumed its move down, and this time it seems even more aggressive. Price gaped down, and made a closing marubozu for the day. Impulse is red. If 63 will get broken, there's nothing left to hold this stock till 50$. However, I would short it now, I wouldn't wait for 63 to get broken.
Follow Up Previous Post (11/16 days post)It was much easier then many stocks we follow when it comes predicting right both short and long term technical analysis. 4-trades in 2 months all successful. The short bearish call that we will have another move back to 71 was achieved today, and probably the downgrade or sell rate from the young analyst spooked many investors today which help us achieve that short term target. The company will report at the end of the month and it's going to be very interested. Will the shorts get burned or anyone left holding the bag will be shown the exit one and for all. The company is not bad or in a bad shape when it comes fundamentals and valuations..it's very expensive and not worth $100. If you want a real time alerts, try www.2waytrading.com
GPRO- You can't help but to love bear channelsOne look at GPRO shows a classic power pattern to always have in your toolbox and that is a BEAR CHANNEL.
If you are long its the what to watch out for when it shows up. If you are looking to short? Its the what to watch for- The downside break of the red channel lines that is. Do yourself a favor and memorize this chart pattern.
These are not recommendations, this is strictly for informational and educational purposes only. Trade at YOUR own risk
GPRO Head n ShouldersThis stock looks to have a natural gravitational pull to create a head n shoulders pattern. 71.5-73.3 has bounced last 2 days, if that breaks, which I believe it will, then this chart that resembles that of DDD will be logical enough to cover shorts at that 64 right shoulder level. I do believe it'll then bounce to that 71.5-73.3 before ultimately failing and retesting initial breakout at the 50 level. It should be interesting to see the stock price by lock up expiration