Peloton's test of Major Supportline, macro implications

Jan 23

Peloton on 1 Week timeframe warrants observation and attention.

Price action after recent declines have reached a critical Support level that dates back to April 2024. This Support trendline has helped with Pelotons move to its recent highs of roughly $10.50.

But Resistance and Selloff has pushed us down to this Support line.

This weeks candle is also breaking out BELOW this support line.

Previous history does showcase a data point where we did print below but was able to make it back onto the Supportline. (Something to consider).

If we make it back onto the Support line and confirm, it would most likely lead to upside.

But playing both sides, if we confirm the breakdown, we can see further declines to the $4.50 - $4.20 zone.


Also put attention to the 2 momentum indicators ive provided.

STOCH RSI is shifting to a shape, im not liking with an increased likelihood of bearish cross
MACD also printing a Deep Red Histobar and mouth of blue/orange lines is widening.

These 2 signals may support the case of further declines especially if we do get a STOCH bearish cross and MACD prints the deep Red histobar at the end of today.

Which could indicate Pelotons attempt to reset further to more Oversold conditions and perhaps better price point.

This development requires attention and observation on Peloton.

I will continue to provide updates as things develop.

Feb 5

Note

Todays Daily move is not a good sign. We will need to see some major buying happen here to counter or significant Bearish macros will develop that may support further downtrend.

There is a massive Gap above us between $4.80 - 5.50. If we can see massive bullish buying back up to fill this, could help prevent further bearish movement for short term.

But A gap on 1 day exists below us between $3.40 - $3.80. Price may be moving in that direction.

Weekly candle if it maintains this shape by end of day tomorrow, will support Bearish case as well and would have macro influence meaning the gap fill below us maybe more in the cards.

This would also potentially support the idea that Peloton may go even further down towards the $2.80 lvl.

Which would be a tricky thing because no data exists below this point.

All in all, I'd be very cautious if you are looking to trade. Look for oversold signals in indicators and position your entries in logical price areas if you want to take positions with tight stop losses.

Ill continue to update as things continue on.

Feb 5

Note

Note also for now its not probable we go back to that uptrending support line which was supporting the Uptrend.
And if Lower low prints on macro timeframes, may further support and or confirm bear trend.