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2 months ago
Peloton rides higher | $PTON
PTON was one of the most eagerly awaited and hottest IPO’s of 2019, and the company has proved to be a very volatile stock thus far. PTON shares have ranged from a price of $20.45 to as high as $37.03 within a forty-day trading range. The company has not been short of controversy either. It’s recent advertisement campaign leading into Christmas was slatted for having a sexist connotation, as it depicted a lady receiving the exercise bike from their adoring male partner. Despite the negativity that some analysts and media outlets put on PTON, the publicity seems to have positively boosted the company’s product awareness and given the company hours of free advertising on all media platforms.
The company’s stock has recently received some bullish commentary from Baird analyst, Jonathon Komp, who assigned the stock as a “fresh pick” with a outperform rating and a $35 dollar price target. This is just slightly above the average target on the street of $34.10 per share, but PTON also boasts a consensus ‘BUY Rating’ among 21 analysts covering the stock.
Now, let’s have a look at the Technical Aspects of PTON for some guidance on the Developing Near and Longer-term Trends:
The Daily Chart shows us some Very Interesting Signals in Price Action:
- PTON has a near perfect bounce off the Fibonacci golden pocket in late December, before advancing and stalling at the retrace golden pocket.
- This area at $30 is considerable resistance with confluence of fib retracement levels, and the downtrend (blue line) which if broken would be a very good buy signal.
- Volume is dominated by the buyers.
- Longer-term Fibonacci one-two-one extension target is $42, which in the current market could take some time to reach.
When we look at Certain Indicators, things look quite promising:
- RSI has reversed and is up trending.
- Stochastic has crossed bullishly, reset and is now in trending higher.
- Histogram is ticking higher and close to crossing the zero line.
- MACD has reversed and remains bullish.
Targets to consider:
Short term – A slight pullback is very possible where horizontal support sits at $29.80-$28.40.
Medium Term – $35.23 – to monthly horizontal resistance.
Longer term – $42.21 – to Fibonacci extension.
A break above the $32 could possibly be a safe entry after clearing multiple resistance levels or wait for some confirmation from the MACD crossing.
It must also be considered that a break above the downtrend line will very likely result in a back test for PTON, so be wary of jumping in to soon and possible ladder into a position.