Swing Trade Idea (PTON) 01-28-2021
Our bullish trade for Thursday, January 28th is Peloton Interactive Inc (PTON). PTON is part of the Discretionary Sector (XLY). XLY has experienced a 4.7% gain in the last month and its 6M trend has been bullish since November 4th 2020.
PTON is currently rangebound and is finding support at $144 providing a good risk/reward for a long entry. Its 6M trend turned bullish on Dec 10th 2020 and with a technical score of 10 (out of 10), PTON is a very strong stock that will likely move higher.
As a stop loss, if PTON were to trade below $140 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $12.80.
