PELTON Looks Ready to Ride Higher How to Trade It

PTON looks like it could breakout here and run significantly higher given the ascending triangle pattern. The trade has a good risk/reward here with about a 5-7% loss with a 10%-20% upside.

The Trade Set Up- The Risk Reward

PTON has a nice ascending triangle pattern, it has formed a big base from 5.60 to 4.50 over the last two months. The stock is now trading at the top of its pattern. The ascending triangle is another pattern that provides a price target, which equals the size of the triangle. In this case, it would make a measured move of over 24%.

Risk: There is support around 5.25 and below, our stop will be below the 50 day ema.
Reward: The first price target is about 6.10-6.25 or a 10% move, the other target is true measured move at 23%-24% to the unfilled gap at 7.

The other play is wait for the breakout above 5.62 and use a stop loss below 5.59. This is even a better risk/reward but Bull went in and got in early!

Currently long at 5.58!

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