GoPro (GPRO) or NoGo — Part Deux (June 01, 2015)
I want to look at GoPro ( NASDAQ:GPRO ) today. The reason is because for the first time in the history with GoPro’s ( NASDAQ:GPRO ) trading the stock is trading above the 200-day moving average. That’s like a huge thing; it’s amazing. Right? Well not really, it had only been trading 200 days less than two months ago. The 13th was the 200th day, which is why you just see this line here.
Here’s why this is important, because the stock traded higher on Friday, on really strong volume and didn’t quite make it through. Right? The big volume spikes typically have been in the green. The red ones, when the stock is on the way down, reflects institutional selling, high volume selling. But now since the stock has started to run up look at this, you’ve got a little higher than average there, you get the point.
You’ve got one big volume spike here on a down day, and then ultimately the stock turns around and trades back above that. The reason for all this buying today was, aside from the fact that the stock has been moving up anyway, was that they’ve got a new entry-level camera, which might be good for me so when I walk on my walker people can get a virtual reality view of that as I wear the camera on top of my helmet.
They’re going to be selling an entry-level camera, which is, I’d say, is a plus for the company, because China’s been kicking this company’s butt with that entry-level camera that’s even more entry level than this new one. So watch this stock. At $60.00, which was close to the high here, that’s a critical level for this stock. So it needs to stay above the 200-day moving average, that’s when you want to be a believer.
If the stock does happen to pullback then here’s what you want to do: you want to just use this trendline as your reference, the further along in time the stock goes before it pulls back, then the higher this price will go. But you want to use this trendline as your reference for when you’re going to buy on a pullback. Ambarella ( NASDAQ:AMBA ) reports earnings after the bell tomorrow.
Just remember GoPro ( NASDAQ:GPRO ) is Ambarella’s ( NASDAQ:AMBA ) customer, not the other way around, so what they report will impact GoPro’s ( NASDAQ:GPRO ) stock price, because the two are seen as trading together. But again, it’s Ambarella’s ( NASDAQ:AMBA ) reporting on what the business is that they’ve been doing with GoPro ( NASDAQ:GPRO ). We have a pretty good indication of what GoPro ( NASDAQ:GPRO ) is doing already.
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