Peloton Stock Powers Higher Toward Resistance: What's Next?

Peloton Interactive Inc. PTON shares were trading higher Friday after the company launched a private label apparel brand.

The company is launching Peloton Apparel, and it will be the first time the majority of the company’s collection will feature items from its private label line.

Peloton Interactive is trading up 8.8% at $116.50. 

Peloton Interactive Daily Chart Analysis

• Shares look to have bounced at support and have been pushing higher in what technical traders call a sideways channel.

• The stock has been able to find support in the past near the $100 level The $130 level has held as resistance in the past. These levels may continue to hold in the future, and the more times they are able to hold, the stronger the levels may become.
• The stock is trading above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance for the stock.
• The Relative Strength Index (RSI) has been pushing higher in recent days and now sits at 60. This shows that more buyers are moving into the stock and there are now more buyers than sellers.

What’s Next For Peloton Interactive?

Bullish traders would like to see the stock continue to rise and eventually break above the pattern resistance. Bulls would then like to see this resistance level be able to hold as a place of support. If the stock can hold the $130 level as support, it's a hint the stock could be ready for its next push higher. 

Bears are looking to see the stock start to fall lower and start falling toward the $100 support level. Eventually bears would like to see the stock fall below the $100 support line and to be able to hold it as a resistance level. This could cause a further bearish push to occur.