2016 Technical Projections: Identifying the Stock of the Year

Stock Picks 2016: 600% Return?

We have examined the stock markets in order to locate a stock at a reasonable price that has the potential for strong gains until the end of the year with a possibility to a long-term bullish trend.

Since GoPro Initial Public Offering (IPO) in 2014 the stock traded above $90 before being pounded by the market, trading below $10 at the time of this writing.  The company’s revenue dropped by almost 50% year on year with a loss of approximately $120 million, which forced GoPro to delay its latest drone (Karma) to the winter holidays.

GoPro was founded in 2002 by Nick Woodman who used his parents money (over $200,000) for investing in his company. In 2014 GoPro initiated its Initial Public Offering (IPO) and was valued at $2.95 billion.

Since GoPro Initial Public Offering in 2014 the stock traded above $90 before being pounded by the market, trading below $10 at the time of this writing.  The company’s revenue dropped by almost 50% year on year with a loss of approximately $120 million, which forced GoPro to delay its latest drone (Karma) to the winter holidays.

GoPro Technical Projection

With that said, from a technical angle it appears GoPro is due for strong gains in the market.

GoPro Weekly Chart

Please click on the chart to enlarge:

GoPro Weekly Chart 20/05/16

GoPro Weekly Chart 20/05/16

The price appears to have found a bottom at $8.50 at the time of this writing. Despite the little data the technical indicators (RSI and MACD Histogram) are simultaneously displaying positive divergence, which is an encouraging signal for corrective gains. $15.60 is the immediate target following a rebound off the support level but we suspect the stock is due for stronger gains in the market. The natural target following a reversal would be $37.00 while the 100% objective is $63.00 a share.

The trigger for the strong gains are anticipating is unlikely yo be from the drones selling. We suspect GoPro with other firms in the military industry will be the key fundamental trigger for the reversal. The robotics industry is beginning to flourish in 2016. While many speculate the GoPro drones may boost the company’s revenue we suspect new projects that are currently kept under the hood are likely to be revealed later in 2016, possibly partnering with other companies in the robotics industry.

As this is a weekly chart it may take some time for stock to reach its 100% objective of our technical analysis ($63.00). It is a long-term projection for the stock, which is rather cheap in our opinion. The latter support based on our analysis is seen at $5.80.

Please note this is not a standard trade alert. Although it may be used for CFD trading it is merely our technical projection for the stock with an affordable price and possible over 600% return. We only present our technical models in the stock market where firm opportunities present themselves.

GoPro is trading at $9.13 at the time of this writing.

30/05/16 UPDATE: GoPro posted moderate gains in the market as anticipated. Please note the following charts are prior to the opening of US Markets.

GoPro Weekly Chart 30 May 2016

Please click on the chart to enlarge:

GoPro Weekly Chart 30/05/16

GoPro Weekly Chart 30/05/16

GoPro Daily Chart 30 May 2016

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GoPro Daily Chart 30/05/16

GoPro Daily Chart 30/05/16

Since GoPro trading strategy was published the stock gained +11.80% (approx.).

21/08/16 UPDATE: GoPro continued to push higher in the stock market, acquiring our initial target at $15.60.

GoPro Weekly Chart 21 August 2016

Please click on the chart to enlarge:

GoPro Weekly Chart 21/08/16

GoPro Weekly Chart 21/08/16

GoPro Daily Chart 21 August 2016

Please click on the chart to enlarge:

GoPro Daily Chart 21/08/16

GoPro Daily Chart 21/08/16

As GoPto acquired its initial target the projection may be accessed by all traders. We have been providing trade alerts in the Forex market since May 2014.

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