Swing Trade Idea – (PTON) – August 11, 2020
Our bullish trade for Tuesday, August 11th is Peloton Interactive Inc (PTON). PTON is part of the Consumer Discretionary Sector (XLY). XLY has experienced a 6.56% gain in the last month and its 1M trend turned bullish on July 1st.
PTON’s 1M trend turned bullish on July 20th. PTON broke above its $70 resistance level and has recently pulled back to this area to provide a good long opportunity. 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 above $63 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $9.90.
