In today’s stock of the day, let’s take a look at one of the pandemic-era darlings — Peloton.
Recently, Peloton formed a classic head and shoulders pattern, clearly marked with orange on the chart. The crucial moment came at the beginning of March, when the price broke the neckline, a key support area highlighted in yellow. That breakout to the downside triggered a strong sell signal and set the tone for a bearish sentiment to follow.
This week, Peloton attempted a retest of that neckline, but it failed to reclaim it. The yellow line, once support, now acted as resistance. The bounce from this level, combined with broader market weakness on Wednesday, reinforced the bearish outlook.
As long as the price stays below the yellow resistance, sentiment remains negative. A break back above the yellow area would invalidate the bearish formation and serve as a bullish reversal signal — but at this point, the chances of that happening appear slim.