Gogo Inc. (GOGO) shares soared more than 30% on Tuesday morning after the inflight internet and entertainment company posted better-than-expected third quarter financial results. Revenue rose 25.7% to $217.26 million, beating consensus estimates by $6.15 million, while net losses of $0.47 per share beat consensus estimates by 21 cents per share. Business aviation continues to be the company's strongest performing segment.

The strong earnings come about six months after the company's weak first quarter financial results. During that call, management indicated that it was rebuilding its plan with new projections and that it would communicate those projections no later than the second quarter earnings call. Investors had been worried that these new figures would be revised sharply lower, and a sell-off in the stock ensued.

Technical chart showing the performance of Gogo Inc. (GOGO) stock

From a technical standpoint, the stock broke out from trendline and R2 resistance at $7.22 to its highest levels in about six months. The relative strength index (RSI) rose to overbought levels at 73.89, but the moving average convergence divergence (MACD) could see a bullish crossover. These indicators suggest that there could be some near-term consolidation, but the overall trend remains bullish at the moment.

Traders should watch for some near-term consolidation above R2 support levels at $7.22 before a move higher to test trendline resistance at about $8.00 that dates back to early April. A move to these levels would reverse the downtrend that began during the first quarter of the year. If the stock fails to hold R2 support levels, traders could see a move back into the prior price channel with support at around $5.50.

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.