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PTON Stock Analysis: Is Correction Over in Peloton Stock?

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PTON Stock Analysis: Is Correction Over in Peloton Stock?
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PTON stock price took support near $4.28 and showed a minor bounce of approximately 25% from the lows. 

Peloton stock price succeeded in regaining the $5.00 level and attempting to break out of the 50-day EMA hurdle. If buyers succeed then the pullback rally might continue to $7.00. 

Peloton Interactive Inc. stock price is in a downtrend and short-term pullback rallies are facing difficulty in sustaining on higher levels. It shows that sellers are active and it will not be easy for bulls to reverse the trend in an upward direction. 

In the beginning of September, PTON stock price tried to break out of the $7.00 hurdle. The sellers were active and succeeded in reverting the price in a downward direction. Later, the price declined and hit a multi-year low. 

After consolidating for a few weeks, PTON shares showed a minor up move indicating that the correction has taken a halt. 

Peloton Interactive Inc. released the quarterly earnings on November 2, 2023. It reported an EPS of negative $0.44 and revenue of $595.5 Million. 

The company missed the EPS estimate by 31.33%. Despite that, the stock price reacted positively and surged 12%. In the coming week, it will be clear that the up move is a trap or genuine.

Will PTON Stock Price Show Recovery in November?

PTON Stock Analysis: Is Correction Over in Peloton Stock?
Source: NASDAQ: PTON daily chart by Tradingview

PTON stock price looks highly oversold so a relief rally may trigger anytime from the lower levels. Till the stock price is trading below $6.74, the reliability of any short-term pull back will remain doubtful. 

However, if overall market sentiment improves and buyers of PTON stock price can break out of the $6.74 hurdle. Then, it may attract fresh buying and the price might rally to $9.00. 

The analysis suggests that PTON stock will recover in November but might face rejection from higher levels. 

Is The Upmove in Peloton Stock Price Looks Reliable?

  
        

Peloton stock price is reversing upward by taking support near the 52-week low. The recent up move does not look reliable so investors need to be careful and wait for the confirmation of the reversal. 

The RSI curve at 53 denotes mild bullishness. The MACD curve slopes upwards and the histogram bar is green which favors the bulls. 

However, the price action is bearish which shows divergence. The supertrend says till the stock price is below $5.50, the trend will remain down. 

Conclusion

PTON stock price reverses upward by taking support near $4.28. The earnings were disappointing but the stock price reacted positively which is quite surprising. 

The analysis suggests that the Peloton stock price might show a recovery but may face rejection from $6.74.

Technical Levels
  • Resistance levels: $6.74 and $8.56
  • Support levels: $4.26 and $4.00
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.

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