Negative news regarding operational manufacturing issues at GPRO have brought the stock down more than 20% in 2 days. The stock currently looks majorly oversold, as the market discounts a disappointing XMas season ahead and less than satisfactory Karma drone sales. This looks overdone. betting on short-term rebound as shorts take profits. Buy at the market with a stop-loss at the recent low of $9.90. Money at risk $0.65/share. Target $12.00/share. Reward/Risk = 2.3/1.0.
Comment:
Reference purchase price at the time of writing this comment = $10.50-10.55/share.
Trade active:
The stock traded as high as 12.47 intraday on Fri.
Those who acted on this idea and sold at a profit: well done!
Those who bought and are still long should be some 6% up and should keep holding.
Incidentally, the stock on Friday completed a somewhat crooked Head & Shoulders.
The distance between the top of the H&S and the neckline ($4) was nearly exactly matched ($3.6) when the stock recorded an intraday low at $9.90.
Rebound full technically justified.
Those who acted on this idea and sold at a profit: well done!
Those who bought and are still long should be some 6% up and should keep holding.
Incidentally, the stock on Friday completed a somewhat crooked Head & Shoulders.
The distance between the top of the H&S and the neckline ($4) was nearly exactly matched ($3.6) when the stock recorded an intraday low at $9.90.
Rebound full technically justified.
Trade active:
Back where we started thanks to Mr. Trump. Stock oversold. Keep position or buy more. Stop loss at 9.75, the low of today.
Comment:
Closing this thread and opening a new one shortly. Keep long this name.
Trade closed manually
