PTON
: This trade is purely technical and focuses solely on price action and Fibonacci. The stock seems to have retraced to its 61.8% retracement after a strong bullish surge that indicates a potential HH sequence. The price suggest that markets may start to consolidate for a few days before the next leg up.
S/L is placed relatively tight; placed under a bearish wick below the 78.6% retracement. If S/L was hit, would re-enter a buy trade at that price with a wider S/L.
T/P is placed at 2 levels, the 1.618 Fib ext and 2.618 Fib ext. Would take out 1/2 of the trade at each level. Closing the full trade at 2.618 Fib level. But will depend on market sentiment in the coming weeks.
( The stock has a good product in the fitness industry and as more people are becoming more health conscious, this stock seems to be a good buy in this sector.)