Time To Check On Fitbit
Dragonfly Capital | Sep 23, 2016 12:03AM ET
Fitbit Inc (NYSE:FIT) IPO’d in June 2015 and quickly moved higher. Two months later it was trading at 52, up 160%. but that was the end of the glory for this stock. Over the next 5 months it would give back that entire gain. But it did not stop there. By late February it was trading at 12, 60% of the IPO price.
Most stopped watching the stock by then. And rightfully so. The stock made a sad attempt higher and fell back in May and flat-lined for the next 5 months. But it is now time to start watching this stock again. The chart below gives 5 reasons.
The stock broke above its 200 day SMA for the first time ever on Thursday. It has been rising with a series of higher highs and higher lows since late June, creating an uptrend. And this uptrend has momentum behind it.
The RSI is in the bullish zone ad rising while the MACD is also moving up in positive territory. Even the Bollinger bands® are opening to the upside. The price just closed the gap from the move lower in May. Continuation to the upside and especially over the May high at 18.85 would signal a significant trend shift to the upside.
DISCLAIMER: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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