fbpx
QQQ
+ 4.58
326.93
+ 1.38%
DIA
+ 1.65
343.89
+ 0.48%
SPY
+ 3.22
415.88
+ 0.77%
TLT
-0.25
140.17
-0.18%
GLD
+ 1.67
168.38
+ 0.98%

2 Stocks Nearing The End Of A Pattern: Technicals To Watch For Next Week

April 22, 2021 6:53 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
2 Stocks Nearing The End Of A Pattern: Technicals To Watch For Next Week

Carlotz Inc. (NASDAQ:LOTZ) and Peloton Interactive Inc. (NASDAQ:PTON) both made big moves Wednesday.

Carlotz closed up 7.23% at $7.05 and Peloton closed down 6.14% at $99.96. Peloton stock lost ground amid a class action lawsuit filed in a California federal court.

lotzdaily4-21-21.png

Carlotz Daily Chart Analysis

  • Carlotz is nearing the end of what technical traders would call a falling wedge pattern.
  • The stock is trading below both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bearish recently.
  • These moving averages may both hold as a resistance level in the future.

Key Carlotz Technical Levels To Watch

  • The stock has been falling in recent months, forming what technical traders call a falling wedge pattern.
  • This pattern is considered a bullish reversal pattern as connecting the highs shows a much steeper drop compared to connecting the lows of the chart, forming a wedge.
  • A break above the line connecting the highs may signal the stock is changing trends and ready to start heading back up.
  • A break below the line connecting the lows could bring about a stronger downward push.

ptondaily4-21-21.png

Peloton Daily Chart Analysis

  • Peloton looks to be forming a head-and-shoulders pattern and is now nearing another key support level.
  • The stock is trading below both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bearish recently.
  • These moving averages may both hold as a resistance level in the future.

Key Peloton Levels To Watch

  • The head-and-shoulders pattern occurs after the stock pulls back steeply and buyers are unable to push the price to new highs.
  • This bearish reversal pattern can be confirmed when the price is able to cross below the support levels previously formed by buyers. This line may be considered the dropoff line. 
  • The $100 level is an area where the stock has been able to find buyers. Bulls are looking to see the price bounce here and move higher.
  • Bearish traders would like to see this support level fail to hold.

Photo courtesy of Peloton.