Peloton To Ride Higher?
Fiona Cincotta April 2, 2020 8:20 AM
Peloton has rallied over 50%, it could have further to ride
This In the current market downturn, traders are scanning the markets for stocks which are outperforming and riding against the tide. Peloton, is achieving just this. Furthermore, there is a good chance that its strong ride will continue even after the current restriction on movement end.
The bikes are expensive at around £1900. If someone invests that amount of money into exercise equipment, the chances are it is because they are looking to continue using the equipment and streaming services going forward after the quarantine ends. The same could be said for the app, if people have tried out home exercising and enjoyed the experience there is a good chance that they may try to continue the habit after the lock down period ends.
After dropping to a low of $17.70 (16th March) the stock has surged over 55% in just two weeks to its current price of $27.96. Far outperforming the Nasdaq, which has gained just 7%.
A meaningful move over its 100 sma (4 hour chart) at $28.50 could see more bulls jump in.
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