Cracking the Code: Elliott Wave Theory and GPRO’s July 2025 Momentum Play

Alright, listen up, you retail traders and daydreaming swingers. I’m Mia Spending Sleuth, and I’ve been digging through the financial underbelly like a mall mole on a mission. Today, we’re talking GoPro (GPRO)—a stock that’s been doing the market’s version of a TikTok dance, and we’re using Elliott Wave Theory to figure out if it’s about to drop the mic or get dropped.

The Setup: GPRO’s Wild Ride

First, let’s set the scene. GPRO has been a rollercoaster for years—peaks, crashes, and everything in between. But in July 2025, something’s brewing. The stock’s been flirting with a breakout, and traders are buzzing about short-term momentum plays. But before you go all-in on your hot takes, let’s see what the Elliott Wave Theory has to say.

What’s the Elliott Wave Theory, Anyway?

For the uninitiated, Elliott Wave Theory (EWT) is like the Sherlock Holmes of technical analysis. It says markets move in waves—five waves in the direction of the trend (impulse waves) and three waves against it (corrective waves). The idea? If you can spot the pattern, you can predict the next move.

Now, GPRO’s chart looks like it’s been through a blender, but we’re going to break it down.

The Case for a Bullish Wave 3 Breakout

1. The Impulse Wave Structure

Looking at GPRO’s recent price action, we might be in the early stages of an impulse wave. Here’s the breakdown:

– Wave 1 (Completed): A sharp rally from the recent low.
– Wave 2 (Pullback): A correction that didn’t fully retrace Wave 1 (classic Elliott Wave behavior).
– Wave 3 (Potential Breakout): If this holds, we could see a strong upward move—the most powerful wave in the sequence.

If GPRO confirms this pattern, traders could ride a short-term swing trade with a target near the next Fibonacci extension.

2. Fibonacci Retracements & Support Levels

Elliott Wave Theory loves Fibonacci. The key levels to watch:
– 38.2% Retracement: A pullback to this level could signal a strong bounce.
– 50% Retracement: A deeper pullback might still be bullish if it holds.
– 61.8% Retracement: If GPRO dips this far, it’s time to reconsider the trade.

Right now, GPRO is hovering near 38.2%, which is a sweet spot for a reversal.

3. Volume & Momentum Confirmation

Elliott Waves aren’t just about price—they need volume and momentum to confirm. If GPRO’s next leg up comes with increasing volume, that’s a green light. If volume fades, we might be looking at a fakeout.

The Bearish Counterargument: Is This Just a Dead Cat Bounce?

1. The Subjectivity Problem

Here’s the thing—Elliott Wave is not an exact science. Different traders see different waves. Some might argue GPRO is in a larger corrective pattern (A-B-C), meaning the recent rally is just a bearish retracement before another drop.

2. The Risk of a False Breakout

If GPRO fails to hold above key resistance, we could see a sharp reversal. That’s why smart traders use stop-losses—because even the best wave counts can be wrong.

3. The Algorithmic Trading Wildcard

Remember, we’re not just trading against humans anymore. High-frequency trading (HFT) can distort wave patterns, making it harder to trust classic Elliott Wave signals. If GPRO gets caught in a flash crash or algorithmic squeeze, all bets are off.

The Verdict: Should You Trade GPRO in July 2025?

So, what’s the play? If you’re a short-term swing trader, GPRO’s setup looks promising—but only if:

✅ Wave 3 confirms with strong volume.
✅ Price holds above key Fibonacci levels.
✅ Momentum indicators (RSI, MACD) align.

If not? Stay out. Elliott Wave is powerful, but it’s not a crystal ball.

Final Thoughts

GPRO’s July 2025 momentum play could be a golden opportunity—or a trap. The Elliott Wave Theory gives us a framework, but the real key is discipline. Set your stops, watch the volume, and don’t get too attached to your wave count.

And remember, folks—the market always wins. Trade smart, or don’t trade at all.

Now, if you’ll excuse me, I’ve got a thrift store haul to inspect. Mia out. 🕵️‍♀️