Peloton Stock Trade Alert: Sell Into This Trend Line
Shares of Peloton Interactive Inc (PTON) surged today more than 12% into lunch, gaining over $6 billion in market cap after the company said they would buy fitness equipment maker Precor for $420 million. A jump of $6 billion in valuation for a $420 million buy sound a little insane? You would be right. However, that is the type of insane market we are in currently and helps this Peloton stock trade alert take shape. There are major factors signaling this is a huge pivot top on the stock.
The first is a trend line connecting the previous major pivot highs from December 2nd, 2019 to October 16th, 2020. If you extend out that trend line, price today is tagging it perfectly. Each hit of this trend line has triggered a major sell, thus logic dictates it likely could happen again. In addition, there is a classic time count on the daily chart that culminates today, signaling a pullback as soon as tomorrow. With a daily RSI at 80 and a weekly RSI at 75, a sell is likely on the horizon. Look for a pullback in the near-term to $139.00 for this Peloton stock trade alert.
(Click on image to enlarge)
Disclaimer: All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as ...
more
Comments
