Gogo Inc. (GOGO)

Gogo stock forecast: buy or sell

Gogo stock outlook

  • Gogo stock only changed -0.91% to close at $3.25 on the stock market today, after 3 consecutive sessions in green.
  • From the chart point view, price is drawing a scaled uptrend since early May with higher tops and higher bottoms. Up to date, price made a 144.36% gain since the beginning of this rally
  • Gogo Inc., through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally.
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Please read:
The viewpoints expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the individual situations of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for educative purposes only

Gogo stock chart overview

Should I buy Gogo stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is GOGO stock a buy?

Currently, Gogo stock matches one trading strategy:

Uptrend buy setup

Gogo stock continues to trend higher since in early May and has marked an amazing 144.36% gain. Price marked a local bottom in this uptrend at $2.77 on July 31, and since then it bounced up a 17.33%. Breaking out above $3.99 - it's last top - will be a good entry point if Gogo resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $3.59

Buy setupBuy pointStop lossRisk
Uptrend buy setup$3.99$3.5910%
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Should I sell Gogo stock?

"To sell or not to sell", if you are holding Gogo stock?. Just as when we have to buy shares, determining when is appropiate to sell is not a whimsy decision, and we must use our own trading strategy. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for shorting GOGO stock

As a rule of thumb, you must never keep an open trade that leads to greater losses than those expected at the time of purchase. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Gogo stock?

In the current situation of Gogo there is not any eligible sell setup, so Gogo stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Gogo stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for Gogo

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Technical analysis

Gogo shares started an uptrend in early May, and grew an amazing 144.36%. During this uptrend, the price gave some entry points on the breakouts. Latest pullback was on July 31, when price bounced at $2.77. Like in all uptrends, price needs to rest and currently price is moving in a range between $3.99 and $2.77

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances as a way to find price points on a chart that may act as barriers, preventing the price of shares to move up or down. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until meeting another support level. On the contrary, resistance levels are where the price may find opposition as it rises. In the same manner, the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rise more easily until it hits the next resistance

The current resistance levels are:

  • R1: $3.52 (8.31% above)
  • R2: $3.55 (9.23% above)
  • R3: $3.58 (10.15% above)
  • The current supports are:

  • S1: $2.77 (-14.77% below)
  • S2: $2.64 (-18.77% below)
  • S3: $2.30 (-29.23% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It is composed of three bands that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on July 31, the price rebounded by 17.33%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 52.05. Gogo stock collapsed a 6.61% since then

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    Earnings and financials

    Gogo Inc. (GOGO) posted first-quarter earnings of $-0.28 per share, significantly improving the Market consensus estimate of $-0.49 per share. This Q1 report represents an earnings surprise of 42.86%. Forecasted revenue was $175.5 million but Gogo slightly beat by 5.13%, reporting $184.5 million.

    Same quarter last year, reported EPS was $-0.21, so recently reported EPS means a decrease of -33.33%. Sales fell a -7.55% on an annualized basis in the 1st-quarter, from $199.6M to $184.5M last quarter.

    Gogo is hosting the Q2 earnings call on Monday next week. Market estimates an EPS of $-0.88, compared to previous quarter that was $-0.28. Earnings reporting day has an additional risk for investors as the results disclosed can gap up or down the stock price with very low volume and not respecting your buy/stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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