PTON stock price fell 34% in the previous month and eroded a big portion of its market capitalization. The majority of the downfall in Peloton’s stock price came after the release of its quarterly earnings.
Peloton stock is in a strong downtrend and no strong signs of recovery are visible. The EMAs are sloping downward confirming the downtrend. Sellers’ dominance is also perceptible.
However, PTON stock price has gone far away from the EMAs so the risk of a short squeeze is high. But, the reliability of the short-term pullback will remain doubtful.
At the beginning of August, Peloton Interactive, Inc. stock tried to break out of the $9.00 hurdle. But sellers were active which absorbed the buying and won the battle.
The breakout attempt failed and prices again reverted in a downward direction. Slow and steady prices declined and eroded the previous gains.
Peloton Interactive, Inc. released the previous quarter earnings on August 23, 2023. It reported an EPS of -0.68 and revenue of $642.1 Million.
Peloton missed the EPS estimate by 68.93% due to which PTON stock reacted negatively and collapsed 22% in a single day.
Will the PTON Stock Price Be Able to Defend $5.00?
PTON stock price witnessed a massive sell-off and hit a 52-week low at $5.05. Later, prices did not give the follow-through momentum and showed some minor recovery. But, $6.68 turned out as a strong hurdle, and the price again faced rejection and reverted down.
Peloton’s stock price looks highly oversold and corrected a lot from its previous swing high. So, a narrow range consolidation is expected for the base formation.
PTON shares closed the previous session at $5.45 with an intraday decline of -6.36%. The market capitalization stands at $1.95 Billion.
Peloton Stock Price is in a Correction Phase
Peloton stock price is in a correction phase and no signs of bounce back are visible. Short-term pullback rallies are getting rejected from the higher levels due to which fresh buyers are reluctant to build longs.
Till PTON’s stock price trades below $7.00, it is expected to remain bearish. However, if the overall market recovers and PTON shares break the $7.00 hurdle then 10% to 15% more upside is possible.
The analysis suggests the stock is in bears’ grip and $5.00 support is at risk.
Conclusion
PTON stock price is in a downtrend and buyers struggle to defend the recent lows. However, the prices have corrected a lot so a narrow range consolidation is expected.
The analysis suggests that Peloton’s stock price is in the bear’s grip, and the probability of recovery in September remains low.
Technical levels
- Resistance levels: $6.68 and $7.50
- Support levels: $5.00 and $4.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/10/pton-stock-will-peloton-stock-price-break-down-5-or-recover/