PTON pushes through Wednesday's high
Peloton Interactive, Inc. (PTON) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PTON finished Thursday at 25.75 gaining $1.23 (5.02%) on low volume, significantly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 25.14, the market confirmed its breakout through the prior session high after trading up to $0.91 above it intraday.
Daily Candlestick Chart (PTON as at Mar 26, 2020):
Thursday's trading range has been $1.74 (7.08%), that's below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for PTON.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 16th, PTON gained 14.38% on the following trading day.
The stock managed to close back above the 20-day moving average at 24.39 for the first time since March 18th. Prices are trading close to the key technical resistance level at 27.05 (R1).
Peloton shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 27.38 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Peloton. Out of 6 times, PTON closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 66.67% with an average market move of 10.83%.