GOGO Forming a Flag Pattern
GOGO has been a powerful stock in 2020 and now looks to be forming a flag pattern. After rising from $4 to over $10 very quickly from late August to early September, it has been consolidating extremely well the past few weeks. It has continued to hold its 50-day moving average and has yet to see extensive selling over this time. This is quite impressive considering its rapid rise. It indicates that those who own it are reluctant to take profits, believing GOGO is headed for higher prices. In addition, the market has been really hot over the past five weeks. Since I started putting money back into stocks in late September, most of my buys have been working. I took losses in $FROG and $FSLY, but this is to be expected since a trader is guaranteed to expect some losses each year. The action of leading stocks is always my favorite indicator and I always look to do more of what is working. The fact that the vast majority of my buys have been moving higher will keep me bullish until that trend changes.
In the past, I have not traded flag patterns too often, instead deciding to wait for a pullback. However, in 2020, many growth stocks have broken out of flag patterns and continued upward to much higher levels. Some examples of these include Tesla, Nio, and EXPI, which have all been explosive winners for me this year. While on some timeframes GOGO looks very extended, its monthly chart shows it has still not reached an all-time high and still has potential for a move higher.
Anything can and will always happen in the market, and shakeouts are always possible, but GOGO is definitely a stock that is worth watching in my opinion for a strong move higher into the end of the year.
Full Disclosure: GOGO is a stock I currently own.
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