Peleton: Possible Dump to the Mid to Upper 70s on Earnings
Hello traders,
Peleton is up there with one of the most overvalued stocks in the market right now and should be traded with caution. How overvalued is it? Well, it works out to that each customer based on their valuation is worth over $30,000 dollars which obviously is absolutely absurd and unsustainable.
Currently, Peleton is trading off a Wave 4 and I expect it to dump somewhat after earnings tomorrow. The target it could drop to would be around the 76-80 level. Having said that I see that as temporary as it will likely grind afterwards to the mid to upper 90s before completing a final Wave 5 before a sharp ABC correction downwards.
For those who own the stock I would sell at-least 50% of your holding for profit and ride the final Wave 5 over the next month. I would not buy the stock pre-earnings from here.
-zSplit
Peleton is up there with one of the most overvalued stocks in the market right now and should be traded with caution. How overvalued is it? Well, it works out to that each customer based on their valuation is worth over $30,000 dollars which obviously is absolutely absurd and unsustainable.
Currently, Peleton is trading off a Wave 4 and I expect it to dump somewhat after earnings tomorrow. The target it could drop to would be around the 76-80 level. Having said that I see that as temporary as it will likely grind afterwards to the mid to upper 90s before completing a final Wave 5 before a sharp ABC correction downwards.
For those who own the stock I would sell at-least 50% of your holding for profit and ride the final Wave 5 over the next month. I would not buy the stock pre-earnings from here.
-zSplit
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