Planet Fitness ( PLNT) does not report earnings until November 7 but the charts and indicators are feeling fit.
Let's check them out.
In the daily bar chart of PLNT, below, we can see that the shares have worked lower and lower over the past 12 months -- a definite loss of "muscle mass." PLNT is trading just above the declining 50-day moving average line but below the declining 200-day line.
The On-Balance-Volume (OBV) line declined to a low in September followed by a limited recovery. The Moving Average Convergence Divergence (MACD) oscillator has improved and is just below the zero line and an outright buy signal.
In the weekly Japanese candlestick chart of PLNT, below, we see a picture that shows some subtle improvement. Prices are still in a longer-term downtrend and trade below the weak 40-week moving average line. There are some lower shadows in the past few weeks and this tells us that traders are rejecting the lows.
The weekly OBV line made a long decline to a September low. A slight improvement is now underway, I believe. The MACD oscillator is close to a cover shorts buy signal.
In this daily Point and Figure chart of PLNT, below, we can see a potential upside price target in the $83 area.
In this weekly Point and Figure chart of PLNT, below, we can see the same $83 price target as the daily chart above.
Bottom-line strategy: I try to exercise as much as my busy schedule allows and right now it looks like PLNT can rally further in the days and weeks ahead. Nimble traders could buy a one-day pullback and risk below $60.
