Peloton Sees Another Dip Wednesday: What's Next?

Peloton Interactive Inc. PTON shares are trading lower Wednesday as the stock falls further below the old support line.

The stock looks to have no company-specific news to explain the drop in price but was trending on social media sites throughout the day.

Peloton Interactive was down 4.95% at $37.25 Wednesday at publication.

Peloton Interactive Daily Chart Analysis

• The stock fell below the sideways channel a few weeks ago and has been continuously falling. The $80 level once held as support, but may now become an area of resistance as the price sits well below this area.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has started to come back as it has made higher lows for the past couple of weeks. The RSI now sits at 34 and shows more buyers have been entering the stock although the stock is still dominated by selling pressure.

What’s Next For Peloton Interactive?

Peloton saw a large drop in early November 2021 and still hasn’t been able to recover. The stock is trading in the $30 range when it was trading in the $80 range and showing support near this level. Bulls are looking to see the price begin to form higher lows and for the stock to start to head back where it once traded. Bulls are also looking to see the price cross above the moving averages. Bears are looking to see the stock continue to fall.

Photo: Courtesy Peloton