Please welcome the Bear Flag to the PTON chart!If you have been watching the PTON chart for the past few weeks and/or been following my ideas over the past two weeks, you would have seen the head and shoulders pattern materialize/activate. However, earlier this morning, a new pattern entered the mix! As you may already know, it is very common for the price to come back up to the neckline of the H&S pattern after breaking below, so there was no reason for people with short positions in PTON to panic when seeing the price rise rapidly over the last week. The twist here is that not only is the Head and Shoulders pattern still valid, but there is now also a valid bear flag in play! This bear flag was a few days in the making and was confirmed earlier today. The reversal pattern (H&S) initiated the downtrend by reversing the uptrend and the continuation pattern (Bear Flag) along with the active H&S pattern will most likely pull the price down:
Price Target 1: ~$70
Price Target 2: ~$55
If/when the price can hit the first target, we can hope for the price to go lower and hit the second target. Please view my last three ideas for reference of the Head and Shoulders pattern. I will keep this idea updated with any updates to my stance on this.
