Shares of Peloton Interactive Inc. (PTON) have dropped sharply in recent days. Let’s check out the charts and indicators to see how long of a rest period we may need.
In the daily bar chart of PTON, below, we can see how swiftly prices have dropped in the past few days. PTON is now below the 50-day moving average line and below the 200-day moving average line. Trading volume has increased on the decline and the On-Balance-Volume (OBV) has turned lower. A declining OBV line tells us that sellers of PTON have become more aggressive.
The trend-following Moving Average Convergence