Actions in Peloton Interactive (PTON) were down sharply on Friday, giving back some of yesterday’s nearly 30% gain after the fitness equipment maker. announced a new general manager and published better-than-expected quarterly results.

The company announced that it had appointed Ford (F) and old Apple (AAPL) leader Peter Stern as new CEO. Stern currently runs the legacy automaker’s digital business services, and while at Apple, he oversaw a range of subscription services, including Apple Fitness+.

On the profit front, Peloton reported a significantly smaller-than-expected loss in the quarter, indicating that the company’s cost-cutting initiatives had begun to produce results as it works to turn around its sales after a decline in post-pandemic demand.

Peloton shares were down 13% at $7.40 as of mid-afternoon Friday, narrowing the stock’s year-to-date gain to about 22%.

Below we walk through Peloton’s chart using technical analysis and identify key price levels worth monitoring.

News-Driven Breakup Gap

Since it erupted above the neck of a double bottom trend earlier this month, Peloton shares continued to trend upward, with the stock price settling at a separation gap yesterday following upbeat company news events.

It is important to note that Thursday’s move occurred at the highest trade volume since the end of August, signaling the participation in the purchase of larger market players, such as institutional investors and asset managers.

However, while the relative strength index (RSI) confirms the upward momentum in prices, it also warns of extremely serious risks overbought conditions with a reading above the threshold of 80.

Let’s take a look at important chart levels on the Peloton chart that investors could be watching after yesterday’s news-driven buying.

Important Resistance Levels to Watch

In a bullish environment, investors should watch for stock reaction to the $9.50 level. This area of ​​the chart could attract selling pressure near a trend line connecting the March low and several peaks from June to August last year

A close above this level could fuel an upward move to around $13, a place investors could look to. block profits close to the eminent December 2022 swing highwhich also corresponds to a range of similar trading levels on the chart between February and March 2023.

Key Support Levels to Watch

On a first withdrawalLike Friday’s decline, investors could look for buying opportunities near the stock’s pre-breakout level, around $6.70, a region of the chart that closely aligns with a series of highs and lows between May 2023 and January this year.

Finally, a deeper retracement could see shares return to lower support around $5, where bargain hunters might look entry points near the neckline of the double bottom pattern.

Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Read our warranty and exclusion of liability for more information.

As of this writing, the author does not own any of the above titles.