Gogo Shares Break Down From Key Support

Gogo Shares Break Down From Key Support
Last quarter, the company reported a wider-than-expected second quarter loss of $44.2 million, driven by increasing costs for launching 2Ku as well as original equipment manufacturer (OEM) 2Ku programs
and costs associated with its air-to-ground (ATG) solution.
The relative strength index (RSI) responded by moving near oversold territory at 31.69, but the moving average convergence divergence (MACD) experienced a bearish crossover
that could signal the start of a longer-term bearish downtrend.
Traders should watch for a rebound from S1 support levels toward pivot point levels at $13.29 on the upside
or a continued breakdown to the 200-day moving average at $11.47 or S2 support at $11.04 on the downside.
Over that time frame, shares have fallen more than 12% following a new $100 million
senior debt offering that matures in 2022 with a 12.5% interest rate.
From a technical standpoint, the stock broke down from key trendline support earlier
this month before moving below the pivot point at $13.29 and S1 support at $12.52.
Technical indicators appear to support a bearish case over the intermediate term, but the significant decline over the past few sessions suggests
that there could be some near-term consolidation before more downside.

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