How the pros are trading GoPro

One of the hottest IPOs this year took a huge tumble this week. But does that just mean a chance to get more shares on the cheap?

Camera-maker GoPro's stock took a 14 percent hit on Thursday after founder Nick Woodman and his wife Jill moved—but not sold—5.8 million Class A shares to their charitable foundation.

It was a surprise move since the lockup period doesn't end until six months after the June 26 IPO. However, the lead bankers in the deal agreed to let the Woodmans do so as to give the couple enough time to get a tax benefit.

Once the market gave it all a second thought, shares of GoPro went back up by as much as 4 percent Friday.

So does that mean the company goes higher?

"I'm still positive." said CNBC contributor Gina Sanchez, founder of Chantico Global. "It's a great story but right now, they're still struggling to get that profitability up."

GoPro's sales were up 38 percent in the quarter ended in June compared with the previous year. But its net loss of nearly $20 million is four times what it was a year ago as the company tries to grow.

On the technicals, Todd Gordon, founder of TradingAnalysis.com, says that while GoPro has been the momentum flavor of the moment, its price is now getting ready to consolidate similar to what it did earlier in the summer.

"In any healthy uptrend, you would see a consolidation that mirrors prior consolidations," Gordon, a CNBC contributor, said. He sees the stock as having formed a 27-day consolidation period starting back in July. He expects to see another 27-day period begin now, with a range of $90 to $95 per share serving as a resistance level.

"Now we're going into this period of consolidation," Gordon predicted. "Options are now trading. Volatility is contracting. I think it's sideways for a while."

To see the full discussion on GoPro, with Sanchez on the fundamentals and Gordon on the technicals, watch the above video.

-----
Follow us on Twitter: @CNBCNumbers
Like us on Facebook: facebook.com/CNBCNumbers