Despite a rebound in the broader markets, shares of GoPro (GPRO) continued to sag during the Wednesday session. The stock sold off sharply in the first hour of trading after a note to investors from Citigroup was pessimistic about the company’s near-term outlook in overseas markets and that GoPro’s growth in overseas markets may “remain muted” this year. Citigroup also noted that a new competitor was emerging in the drone camera space. DJI, a leading drone maker, is developing its own 4K cameras and adding them to most of its drones. This development could further reduce GoPro’s sales.
The closest technical support target for GPRO is at $57.50, with overhead resistance at $69.23. A test of the Wednesday lows later this week could push GPRO under current $62.50 price support for a retest of the $57.93 level.