Peloton Threatens Head and Shoulders Top

The term "head and shoulders top" is often thrown around when a stock starts to show signs of distribution. As the work-from-home stocks have struggled recently, charts like Peloton Interactive (PTON) have transitioned from accumulation to distribution phase causing investors to question their long-term prospects.

In today’s video, we’ll use the current chart of PTON to illustrate how to determine a head and shoulders top, what key levels come into play, and what this pattern could mean for the short-term and long-term outlook for this key growth name.

·      How to determine whether a head and shoulders pattern is a valid sell signal or requires further confirmation

·      How the price patterns for Peloton relate to other technical indicators like moving averages and Fibonacci retracements

·      What price action would invalidate the head and shoulders top and suggest a new impending uptrend

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RR#6,
Dave

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