GoPro (GPRO) has been breaking down hard over the past several days. We warned about taking a position in GPRO back in October. Our reason was that Twitter momentum was painting a negative divergence and we needed to see price shake out and create a positive divergence. Here’s the chart we posted on 10/13/14.
Subscribers to Trade Followers have been able to track momentum over the past two months. They’ve seen Twitter momentum moving higher, but not creating a clear buy signal (momentum break down trend after a positive divergence). Price is now falling and momentum is confirming the fall. As a result, we’re still waiting for a positive divergence and a subsequent break of the down trend before considering a long trade.