This is an updated to my "GPRO WILL FOLLOW TWITTERS PRE-LOCKUP CHART" chart.
The major important update here is that I have changed the channel lines that I had before.
New Channel in Red: Support around 42:
Old Channel in Dashed Black: Support around $35.
It looks like the new channel has acted as support in the past. Gpro actual bounced off of this two days ago. Its hard to know which channel wall street will respond to but it seems that the new has acted as support before
Change in Approach: I am no longer expecting a breakdown all the way to $35. I am looking for about a 10-14% pull back taking us to an X mark the spot point at $40 which would have the lower channel line and support line meeting. Combining 2 support lines and being oversold in the and a support at $42, makes us in perfect range for a bottom and bounce.
It is possible we not flush through on the expiration which would be great because that means gpro has some good strength but if we do I see that 39-41 as being great entry points.
Like the Twitter chart...I would expect weak hands to be pushed out...meaning I believe support will be broken temporary before bouncing. Look for a chart break down then look to make your entry.
I am looking fro GPRO to follow a similar path to Twitter before and after its lock up.
Twitter's before Lock Up Beat: Stock Dropped 10%
Gpros's before Lock Up Beat: Stock Dropped 10%+
Twitter leading up to lock up
Gpro has a leading up to lock up
Twitter dropped days leading up to lock up and 14% on lockup
Gpro dropped days leading up to lock up and ? on lock up
Twitter bottomed out shortly after lock up and bounced off of a lower channel
Gpro has a lower channel that it too could possible bounce off of.
I am looking for the lower channel bounce if we get down there
Twitter had a oversold rotation right after lock up and bounced
I am looking for Gpro to have a rotation
Twitter bounced off of the lower and short term target was upper channel
I am looking for Gpro to bounce off of the lower and have a short term target of the upper channel