Swing Trade Idea (PTON) – May 18, 2021
Our bearish trade for Tuesday, May 18th is Peloton Interactive Inc (PTON). PTON is part of the Discretionary Sector (XLY). XLY has experienced a 5.2% decline in the last month and its 1M trend has been bearish since May 11th.
PTON recently broke below $96 support and has since retested this level and moved lower providing an ideal bearish entry. With a technical score of 4 (out of 10), PTON is a weak stock that will likely move lower.
As a stop loss, if PTON were to trade above $96 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $17.20.
