PTON 7-Month Head and Shoulders Pattern Formation

2021년 4월 22일

I have been monitoring PTON for a little while now and recently bought some puts on the stock. There is a massive Head and Shoulders pattern that has been formed over the course of 7+ months, starting in late September 2020. This stock was looking bearish when I opened the puts, as can be seen with the MACD crossover and many other indicators. The H&S chart pattern and the sell signals from a multitude of indicators coupled with the recent concerns about the safety of Peloton treadmills provides a golden opportunity for investors looking to make some money on the strong downtrend that this stock will potentially experience.

Currently, I am waiting for the breakout below the neckline for confirmation of the H&S pattern to open some more put positions. I will update this idea with more information as price action continues to flow.

Please like this idea if it was helpful and let me know how I can improve my ideas! I am always looking to better my techniques and analytical skills, so I welcome any constructive criticism. I will be posting many more ideas in the future, so consider following if you would like to see them. Happy trading, everyone!

2021년 4월 22일

노트

Price Target if pattern is confirmed: ~40+% drop, implying a drop to the mid $50 level. Keep in mind, however, that, with the Head and Shoulders pattern, the price target is often not reached fully, or only partially reached. Regardless, I think there is a high chance of price dropping a significant amount upon pattern confirmation.