Keep Riding Peloton, Stock Could Climb Higher

PTON is in an uptrend with no signs of selling.
Stocks quotes in this article: PTON, ZM, SPOT

Jim Cramer told his Mad Money viewers Monday night that most of the best performers in his Covid-19 index have been technology names, with Peloton Interactive Inc. (PTON) and others such as Zoom Video (ZM) and Spotify (SPOT) leading the pack.

Let's check out a couple charts of PTON. 

In the daily bar chart of PTON, below, we can see that prices have tripled from the March nadir. Pretty amazing. PTON is trading above the rising 50-day moving average line but we are short of 200 days of trading to show the 200-day average. The slope is probably positive too.

The On-Balance-Volume (OBV) line has been rising all year and confirms the price strength in the stock. The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in early April and it is still pointed up.

 
In this Point and Figure chart of PTON, below, we can see a nearby price target in the $63 area.
 
Bottom-line strategy: It looks like exercising at home and not in a crowded spin class is a powerful incentive. PTON is in an uptrend with no signs of selling. Longs could aim for the $63-$66 area in the near-term.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Health Care Equipment & Services | Mad Money

More from Stocks

Stay Guarded Amid Rally's Rotation

James "Rev Shark" DePorre

Stocks spin, and that makes the market picture rather murky.

Dare I Recommend a Retail Name Like American Eagle Outfitters?

Bruce Kamich

Let's check out the charts.

Gravity Is Pulling on Apple

Mark Sebastian

Here's where I see AAPL going and how to play it.

Look for General Motors Shares to Restart Their Uptrend

Bruce Kamich

Why aggressive traders could get behind the GM wheel again.

Alibaba Is Sold out on the Downside

Bruce Kamich

China at a bearish extreme is an opportunity.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight