Hi traders, this is my first idea ever on Peloton even though I have been watching it for months but never had the guts to buy it considering how far it ran already. The selling pressure on this stock was heavy in recent weeks until it found support around $94 which was the support back in November 2020 making it a double bottom.
The stock then recovered and managed to break above the short term down trending line and close the week above it (purple color in chart). This should give us confidence to enter long trades targeting the 50 DMA ultimately in the coming weeks. There are milestones in between to take partial profits derived from the Fibo retracements and support/ resistance levels. You may enter the trade on market opening and target the following:
- TP1 @ $126
- TP2 @ $132
- TP3 @ $140
This gives us potential 20%+ trade with low risk. Stop loss can be placed below $100 as per your risk management.
I suggest closing all positions around the final target at $140 as there is a probability the stock would form a H&S pattern if rejected from the area meaning the stock can potentially fall hard and break the $94 support in the coming months.
Please share your thoughts in the comments. Thanks for the support!
The stock then recovered and managed to break above the short term down trending line and close the week above it (purple color in chart). This should give us confidence to enter long trades targeting the 50 DMA ultimately in the coming weeks. There are milestones in between to take partial profits derived from the Fibo retracements and support/ resistance levels. You may enter the trade on market opening and target the following:
- TP1 @ $126
- TP2 @ $132
- TP3 @ $140
This gives us potential 20%+ trade with low risk. Stop loss can be placed below $100 as per your risk management.
I suggest closing all positions around the final target at $140 as there is a probability the stock would form a H&S pattern if rejected from the area meaning the stock can potentially fall hard and break the $94 support in the coming months.
Please share your thoughts in the comments. Thanks for the support!