Hello Traders! Today, we’ll dive into the 4H Elliott Wave structure of Peloton Interactive Inc. ($PTON) and explain why the corrective pullback could present an excellent buying opportunity. Let’s analyze the price action and forecast the next steps.
About Peloton Interactive Inc.
Peloton Interactive, Inc. is an American exercise equipment and media company based in New York City. The company’s products are stationary bicycles, treadmills, and indoor rowers equipped with Internet-connected touch screens that stream live and on-demand fitness classes through a subscription service.
5 Wave Impulse Structure + ABC correction
$PTON 4H Elliott Wave View February 3rd 2025:
The 4H Elliott Wave chart for $PTON reveals key patterns based on Elliott Wave Theory. This analysis provides a roadmap for traders to plan their next steps effectively.
Breaking Down $PTON’s Recent Price Action
Since the May 2nd 2024 low, $PTON has followed a classic 5-wave impulse pattern, indicating a strong trend. Here’s what has happened so far:
- Wave ((1)) ended on December 17, 2024, marking the first impulse.
- Afterward, the stock pulled back in a 5-wave correction, eventually bottoming out at wave (A).
- $PTON then bounced and failed, completing wave (B) on January 15, 2025.
- Now, wave (C) of wave ((2)) is in progress, and the price is approaching a potential support area known as the Blue Box, which ranges from $6.38 to $4.59.
The Blue Box: A Key Area to Watch
The Blue Box represents a crucial zone where buyers could step in and start the next rally toward wave ((3)). Typically, corrections occur in 3, 7, or 11 swings, so traders should remain cautious and manage their risk.
Here’s What to Keep in Mind:
- Stay above the Invalidation Level: As long as the price holds above $2.70, the bullish outlook remains intact. A drop below this level would require a new analysis.
- Avoid Short Selling: The anticipated decline toward the Blue Box might tempt some to sell, but this carries risks. A truncation could occur, cutting the move short. Instead, watch for signs of a bounce in the Blue Box as a signal for the next rally.
Smart Risk Management
Because the correction could extend into 7 swings, consider taking partial profits on the first bounce. By doing this, you protect some gains and make your remaining position risk-free, setting yourself up for the potential wave ((3)) rally.
Why Elliott Wave Theory Points to a Rally
Elliott Wave Theory helps traders understand market trends and sentiment shifts. In this case, it suggests that once wave ((2)) finishes, $PTON could start a new upward leg, aiming for fresh highs with wave ((3)).
Conclusion
With $PTON nearing a crucial support zone in its Elliott Wave cycle, traders should stay alert for a potential rally. As long as the stock remains above the $2.70 level, the chances of a bullish move increase. Use this analysis to guide your trading strategy and anticipate what’s next.