Is it time to buy GoPro (GPRO)? Check it out. (April 11, 2015)
GoPro ( NASDAQ:GPRO ) is finally starting to drift above the 50-day moving average again. It looks to me like the stock is done going down. It took a pretty big haircut from top to bottom, just about two-thirds, but it’s starting to be accumulated now. You can look at the MACD, which is the moving average convergence/divergence, it’s a trend and momentum indicator, finally back above the midline.
The deal with this indicator is it’s just like check the box. If it’s above the midline then it is considered to be in an uptrend. If it is below the midline it is considered to be a downtrend. The stock has been considered to be in a downtrend since about here, and it has indeed been in a downtrend; so uptrend, downtrend.
Now the direction of the MACD indicator indicates momentum. Increasing momentum here, increasing momentum here. So we’re back up above the midline; I actually misspoke here, what I’m talking about here is the distance between these two lines. As it gets wider that’s a reflection of increased momentum.
But now we’re starting to get it on the other side. The distance between the lines is greater here than it was when it was chopping around so that’s telling you that there’s actually starting to be a pickup in momentum to the upside. If you look at where the stock was at the low versus now it’s up almost 20 percent in a month, so that’s a pretty good move.
I think GoPro ( NASDAQ:GPRO ) is something you can buy right now, and I have hated GoPro ( NASDAQ:GPRO ); I haven’t hated it I just think it’s a silly analysis to say, “Oh, they’re a media company.” No, they’re a camera company. They report earnings on the 28th of this month; it wouldn’t surprise me to see the stock trade higher between now and then just in anticipation of better than horrible earnings. So I think GoPro ( NASDAQ:GPRO ) is a good stock to consider buying right now.
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