GPRO finds buyers again around 5.06
GoPro Inc. (GPRO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GPRO ended the month 11.13% higher at 5.29 after gaining $0.11 (2.12%) today on high volume, significantly outperforming the S&P 500 (0.77%). Today's close at 5.29 marks the highest recorded closing price since July 30, 2019. Trading up to $0.14 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 20th, GPRO gained 3.86% on the following trading day. Closing above Thursday's high at 5.23, GoPro confirmed its breakout through the prior session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (GPRO as at Jul 31, 2020):
Friday's trading range has been $0.26 (5.0%), that's above the last trading month's daily average range of $0.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GPRO. Prices continued to consolidate within a tight trading range between 5.05 and 5.34 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
Unable to break through the key technical resistance level at 5.31 (R1), the stock closed below it after spiking up to 5.32 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 5.08 in the previous session, the market found buyers again around the same price level today at 5.06.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 5.34 where further buy stops might get activated. With prices trading close to this year's high at 5.41, upside momentum could speed up should GPRO be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for GoPro. Out of 236 times, GPRO closed lower 52.97% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.17% with an average market move of -2.56%.