Peloton tests support at $100
Fiona Cincotta April 22, 2021 9:47 PM
Peloton closed 1.5% higher but is still on track to decline 12% across the week. After falling through its 200 EMA Peoloton is testing support around $100.
Peloton closes the session 1.5% higher. However, the stock is still on track to lose around 12% across the week.
The stocks tumbled lower after US regulators issued an urgent safety warning to customers.
Peloton has pushed back on the claims that animals and small children have been sucked under its treadmill Tread+. Peloton says the claims are inaccurate and misleading.
The share price trades in a downward trend below an ascending trendline dating back to the start of the year. It trades below its 50 EMA & crossed below its 200 EMA at 106 earlier this week.
So far support is holding at $100. A break through this level could open the door to a deeper selloff to $90 low November 9 or even $80 low September 2020.
A move over the 200 EMA is needed for any sort of recovery to take place. It would take a move over the 50 EMA at 117 and the descending trend line for buyers to gain momentum.
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