After charting the recent IPO GoPro as short setup for a several weeks, the issue now becomes whether the stock has become a buy.
On the updated daily chart, below, you can see the weakness late-last week down out of the highlighted bear flag failed to confirm lower. In fact, it led to a multi-day bounce this week. Beyond that, the company has lock-up period this week, a source of expected supply.
However, sentiment may be too negative in the short-term, and some of the longs from higher prices could easily have already capitulated due to the pain of seeing the stock down seemingly every day 5-6%. In effect, GoPro may try to use its lock-up handcuffs as weapons on shorts, short-term.
Currently, the chart is not my kind of long setup. But that can easily change later this week and into next week, if price can base out a few days sideways, in a benign manner before attacking the key $70 area above. Alternatively a move back under $63 puts the short thesis back on the table.
Either way, GoPro has wreaked havoc this holiday season, especially for those failing to exude stop-loss discipline even as the major indices hit fresh highs.