Intraday Stocks Analysis: GoPro and Bouygues Heavy Construction Eyed

GoPro Technical Analysis

GoPro (GPRO) has probably attracted the eyes of many global investors in US equities. This is due to the continuation pattern that has been painting on the 4hr chart, which if the weekly chart is reviewed there is a firm possibility for a technical retracement towards $80.

GoPro 4hr Chart

Please click on the Chart to enlarge:

GoPro 4hr Chart 08/08/15

GoPro 4hr Chart 08/08/15

GoPro Intraday Strategy

The 4hr chart clearly displays a bullish flag, which is a classic continuation pattern that can be applied for multiple markets including equities. Although we are not displaying the weekly chart, the blue line at $66.20 is the approximate location of the neckline of the reversed Head-And-Shoulders (H&S) that is being painted on the daily chart. By the book the bullish flag will only kick into play once the high is breached. To concrete the entry a firm break above $66.20 (daily chart neckline) may be the key technical level.

An alternative that is less conservative would be to wait for a bullish flag outside the flag itself (the pennant), anticipate a dip to re-test the breached resistance and garner the gains towards the high at $66.20 where a break above may unleash stronger gains in the stock. We are certain many stock traders are waiting for the chart to provide a technical signal that may pave the way for moderate gains.

The target of the bullish flag is often measured by the flag pole (the vertical black line). We are nevertheless not opting for the objective of the bullish trend and opt for $75.

Bouygues Heavy Construction

Bouygues Heavy Construction (BOUY.PA) has a fair potential for moderate gains above its 2015 high. The potential for strong gains can be seen on the weekly chart were higher highs and lower lows were painted. The 4hr chart is attractive due to its potential for affirming reversed Head-Shoulders (H&S).

Bouygues Heavy Construction 4hr Chart

Please click on the chart to enlarge:

Bouygues Heavy Construction 4hr Chart 08/08/15

Bouygues Heavy Construction 4hr Chart 08/08/15

Bouygues Heavy Construction Strategy

The 4hr chart, inline with the daily chart painted a reversed H&S where the neckline is diagonal instead of horizontal. A break above the neckline has already occuted, which may affirm the gains we are anticipating. The target for the reversal is seen at 38.45, however, a firm break above 38.45 may lead to stronger gains due to the established uptrend in the weekly chart. In such a scenario the target, based on clean technical analysis would be 45.

Should the gains we are forecasting materialize, the 21 Moving Average (MA, in orange) will cross the 200MA (in pink), which is another technical signal the uptrend is due to resume on an intraday level.

As multiple time frames are combined (4hr,daily and weekly) we are unable to determine the estimated duration for the targets to be reached by the market. If we opt for the weekly chart, which is the largest time frame we would have to say 4 months.

10/08/15 UPDATE: Moderate gains were noted in GoPro as the price broke outside the flag.

GoPro 4hr Chart

Please click on the chart to enlarge:

GoPro 4hr Chart 10/08/15

GoPro 4hr Chart 10/08/15

A more conservative entry as we wrote earlier would be a firm break above 66.20.

There were minor gains were also noted in Bouygues Heavy Construction.

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