#Peloton #Stock #Price #Levels #Watch #Upbeat #Earnings #Naming #CEO
Key takeaways
- Shares of Peloton fell sharply on Friday, undoing much of the near-30% gain posted yesterday after the fitness equipment maker announced a new CEO and reported better-than-expected results.
- The stock headed higher after forming a double bottom, as the price formed a breakaway gap yesterday following the company’s upbeat earnings. However, the RSI warns of severe overbought conditions
- Investors should monitor important resistance levels on the Peloton chart around $9.50 and $13, while keeping an eye on key support levels near $6.70 and $5.
Shares in Peloton Interactive (PTON) fell sharply on Friday, undoing much of the near-30% gain recorded yesterday after the fitness equipment maker announced a new CEO and reported better-than-expected quarterly results.
The company said it has appointed Ford (F) and former Apple (AAPL) executive Peter Stern as its new CEO. Stern currently heads digital business services for legacy automakers, and while at Apple, he oversaw a range of subscription services, including Apple Fitness+.
On the earnings front, Peloton posted a much smaller-than-expected loss during the quarter, suggesting the company’s cost-cutting initiatives are starting to pay off as it works on turnaround efforts to revitalize sales after demand slumped following the pandemic.
Peloton shares were down 13% at $7.40 in mid-afternoon trading Friday, trimming the stock’s year-to-date gains to about 22%.
Below, we navigate the Peloton chart using technical analysis and identify key price levels worth paying attention to.
The news-driven separatist divide
Since breaking above the neckline of the double bottom pattern earlier this month, Peloton shares have continued their upward trend, with the stock price hitting a breakaway gap yesterday following upbeat news events for the company.
Importantly, Thursday’s move occurred with the highest trading volume since late August, indicating buying participation by larger market players, such as institutional investors and asset managers.
However, while the Relative Strength Index (RSI) confirms bullish price momentum, it also warns of severe overbought conditions with a reading above the 80 threshold.
Let’s take a look at important chart levels on the Peloton chart that investors may be watching after yesterday’s news-driven buying.
Important resistance levels to monitor
Amid a move higher, investors should keep an eye on how shares respond to the $9.50 level. This area on the chart could attract selling pressure near the trend line connecting the March low and several highs from June to August last year.
A close above this level could fuel an upward move to around $13, a location where investors might look to take profits near a prominent December 2022 swing high, which also corresponds to a group of similar trading levels on the chart between February and March. 2023.
Key support levels to watch
On an initial pullback, like Friday’s move lower, investors may look for buying opportunities near the stock’s pre-breakout level around $6.70, an area on the chart that closely corresponds to a set of peaks and troughs between May 2023 and January of this year.
Finally, a deeper bounce may reconsider the stock’s low support around $5, as bargain hunters may look for entry points near the neckline of the double bottom pattern.
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#Peloton #Stock #Price #Levels #Watch #Upbeat #Earnings #Naming #CEO
