A Technical Look At GoPro's Plummet

shares were trading lower by $2.69 (6 percent) at $40.72 in Wednesday's session. With no relevant news out on the issue, let's explore the technicals in the issue and one other possible explanation for the steep decline. From a technical perspective, the decline is a result of the false break-out from Tuesday's session. After struggling with the $44.00 level four sessions in a row, it rallied and made a new high for the move at $44.45. Although it retreated to close at $43.41, it was not enough of a shakeout to get the break-out and momentum traders out of the issue. Related Link:

Why did traders flock into the issue over the past week? They may have been following the lead of two Wall Street firms that recently upgraded GoPro. On March 26, Baird upgraded the issue from Neutral to Outperform and on March 30, Dougherty & Company

from Neutral to Buy. At this time, is is attempting to stabilize at the $40.60 level, but is still trading near the lows for the session. If the decline continues, the next identifiable support level may be at its March 23 low ($39.81).