GOGO broke the neckline (red dash line) of a head and shoulder pattern with huge volume on Dec 18. It has been moving within a declining channel since then and touched the lower edge of the channel last Friday. The price is close to several supports right now: (1) the lower edge of the declining channel (2) the support line connecting the lows of Nov 19 and Dec 24, and (3) 0.5 Fib level at 22.70.
Where will it go from here? The breakdown of the HS pattern has a measured move to around 20.00 (see dotted lines 1 and 1') and also suggests that the declining channel is likely a continuation pattern in nature. If that is the case, it has a measured move to around 17.70 (see dotted lines 2 and 2'). Therefore, a measured move range is formed (20.00 - 17.70) which covers the lower edge of the gap, 19.00.
Conclusion: If the above mentioned supports fail to hold, the price is likely to find support near the lower edge of the gap between Nov 8 and 11. Let's see how well these supports work in next week.
Where will it go from here? The breakdown of the HS pattern has a measured move to around 20.00 (see dotted lines 1 and 1') and also suggests that the declining channel is likely a continuation pattern in nature. If that is the case, it has a measured move to around 17.70 (see dotted lines 2 and 2'). Therefore, a measured move range is formed (20.00 - 17.70) which covers the lower edge of the gap, 19.00.
Conclusion: If the above mentioned supports fail to hold, the price is likely to find support near the lower edge of the gap between Nov 8 and 11. Let's see how well these supports work in next week.