Shares of Peloton Interactive (PTON) jumped higher Wednesday after the exercise equipment firm reported, according to TheStreet, "a wider-than-expected second quarter loss but noted that its subscription business outpaced hardware sales as the group's turnaround continues to gather momentum."
Nautilus Inc. (NLS) is another equipment maker and its shares also posted a big price jump on Wednesday.
Let's give these two names a workout on the charts and indicators. Some healthy competition is good.
Peloton
In the daily bar chart of PTON, below, I can see that the shares moved sideways from June. Recently, prices firmed with a higher low in December and a recent new higher high to establish a short-term uptrend. The shares are above the 50-day and the 200-day moving average lines -- more from moving sideways than from rallying strongly.
The trading volume looks like it has been more active since September. The On-Balance-Volume (OBV) line shows a rise from October. The Moving Average Convergence Divergence (MACD) oscillator has spent some time above the zero line starting in November.
In the weekly Japanese candlestick chart of PTON, below, I can see improvement. The shares are above the bottoming 40-week moving average line.
The weekly OBV line has been stable since September. The MACD oscillator is testing the zero line from below after a year-long recovery.
In this daily Point and Figure chart of PTON, below, I can see a potential upside price target in the $28 area.
Nautilus
In this daily bar chart of NLS, below, I see a bottoming formation playing out from May. Prices have finally moved above the 50-day and the 200-day moving averages.
The daily OBV line made its low back in May. The MACD oscillator is above the zero line in bullish territory.
In the weekly Japanese candlestick chart of NLS, below, I see the shares improving after a long slide. NLS is just above the 40-week moving average line and like PTON this is more from moving sideways than rallying.
The weekly OBV line is still pointed down. The MACD oscillator remains below the zero line for now.
In this daily Point and Figure chart of NLS, below, I used a five-box reversal filter. Here the chart tells us that a price target of close to $2 was reached.
In this last Point and Figure chart of NLS, below, I used weekly close only price data with a 10-box reversal filter. Torture the numbers to give you the answer you want. A price target of $6.62 is indicated.
Bottom-Line Strategy
A story of two equipment makers. Can the leadership of PTON pull off a turnaround? Can shares of NLS continue to improve? Aggressive traders who understand risk could probe the long side of both of these names. Stay nimble and rest between sets.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider NLS to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.)
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
