Fitbit Bulls Step Up To The Plate

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Fitbit Inc FIT shares were trading higher by $3.31 (10 percent) at $36.59 in Tuesday's session. A catalyst for the rally is the initiation of coverage by RBC Capital's Mark Sue (Outperform rating and a $45 price target).

See Also: RBC: Buy Fitbit, It's 'Not A Fad'

It has been a wild ride for the new issue, soaring from its opening day low of $29.50 to $40.45 two days later. Four days removed from that peak, it reached $32.50 in Monday's session before rebounding to close at $33.38.

The initiation of coverage instigated a higher open ($35.05 vs. Monday's close of $33.28). After a retreat to $34.50, the rally continued.

So far, it has found resistance ahead of Friday's high ($36.94), only reaching $36.74, but is still poised to post its fifth close over $36 since its IPO.