Is there still upside in Planet Fitness (PLNT)? Find out here. (September 07, 2018)


I want to look at Planet Fitness ( NYSE: PLNT ) here and this is why: The stock has been in a pretty solid uptrend. There are actually not that many stocks (just letting you know), there are not that many stocks that are giving us really good entries now. But there are a lot of stocks that are still trending pretty well and this is one of them.

The deal is, look at the 50-day moving average, this is really what defines the uptrend. It has hit here; for a couple weeks it tagged it there. Since May it has never even hit the 50; back here you can see that, we don’t need to go for a walk down memory lane. What I want to show you is, again, that the stock hit the 50 here, found support and then kept moving. Here is didn’t hit it, didn’t hit it, didn’t hit it, didn’t hit it, didn’t hit it, ALMOST hit it. And so this gives us, actually, a pretty good entry point.

Now, I am not looking at this to be some big, massive squeeze, you can look at CHEF ( NASDAQ: CHEF ), for something like that but I am looking at this as a fairly low-risk entry point; where you keep your stop around $48.00 or so. You are buying it so you are risking $2.50 or whatever, which isn’t very much at all on a $50.00 stock. You could even keep it tighter if you want but we will say around $48.00. And then you are buying the stock close to this 50-day moving average, you are probably going to have to be a bit patient but ultimately I think the uptrend continues because, hey, the holidays are coming on, who doesn’t want to get fit?

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