Earnings Play: Peloton Interactive

Peloton's expected move is 16.5%.

New Highs 2

On Thursday, after market, Peloton Interactive (PTON) is anticipated to report fourth quarter EPS of $0.12 compared to an LPS of $1.88 a year ago on revenue of approximately $581.1 million vs. $223.3 million last year. The company operates an interactive fitness platform and its expected move based on front-month options is 16.5%. The last time the company reported earnings it spiked 16.0%.    

Looking at a daily chart, Peloton's stock price has been in an uptrend since mid-March. The RSI is bullish and sitting just below overbought territory at roughly 68. After price broke out above its 72.00 resistance level on August 28th, it has been making huge price swings and made a record high of 92.50 on September 2nd. Given that the trend is still bullish and that the RSI is bullish, price will likely breakout above its 92.50 high and advance towards its first Fibonacci target of about 112.75. However, if price pulls back to its 72.00 level, traders should look for a possible bounce. If price cannot manage to hold above its 72.00 support level, it would be a bearish signal and price could potentially fall further to 62.50. If price reaches its second support of 62.50, it could be signaling the beginning of a new downtrend.   

Source: GAIN Capital, TradingView

More from Earnings

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account