Peloton Interactive, Inc. (PTON) popped on news that the interactive fitness company is going to sell its equipment on Amazon.com, Inc. (AMZN). PTON jumped more than 20% on the news with volume spiking to its highest level in more than 100 days.
The stock is likely to see another above-average move when Peloton reports earnings on Thursday, August 25, 2022.
The technical question is what is in store for shareholders based on PTON’s stock chart.
Honestly, it’s about as straightforward as it gets. Peloton Interactive has clear resistance at $14. If bulls can push PTON above $14, then $16 looks like the next logical landing zone. After Joe Montana ($16), then $20 appears to be the next stiff point of resistance and likely where the 200-day mark could be by the time PTON hits twenty.
On the downside, the 50-day moving average of $10.50 and rising should be a reliable safety net unless earnings and guidance are beyond bad. If that’s the case, then Peloton could ride off to new 52-week lows before selling anything on Amazon.
Swing/day trading is very risky and only appropriate for the most aggressive investors who can afford to lose large amounts of money in short periods.