Planet Health Charts Counsel Its Shares Might Use Some Firming Up

In his executive decision segment of “Mad Money” Tuesday, Jim Cramer spoke to Chris Rondeau, CEO of Planet Fitness (PLNT), the fitness chain.

Rondeau said it was still early in recovery, but it was important for people to get back to their fitness routines and that is exactly what they are starting to do. Planet Fitness lost nearly a million members when the pandemic began, but the decline has slowed since then. Aside from members wearing masks, Rondeau said, “It’s starting to feel normal.”

When asked how Planet Fitness could have a market cap of $ 6.4 billion while Peloton Interactive (Home Fitness Sensation)PTON) is valued at $ 43 billion. Rondeau said that peloton is trending right now but relies on Planet Fitness.

Let’s look at PLNT’s charts to see if they’re all the rage or not.

In this daily bar chart from PLNT below, we see some hints of the next PLNT exercise. Prices rose in November and then fell back quickly, suggesting that the most recent long positions are not long-term holders. Prices then recovered somewhat into December, but lagged behind the November zenith. PLNT is ready to test / break the rising line of the 50 day moving average. Trading volume has been shrinking from November to December which tells me that no new longs will be attracted. The on-balance-volume (OBV) line, controlled by simple math, has stalled and looks soft. A weaker OBV line will tell us that PLNT sellers have become more aggressive. The MACD (Moving Average Convergence Divergence) oscillator is aimed at the zero line.

On this weekly Japanese candlestick chart from PLNT below, we see a large upper shadow in November and smaller upper shadows in December as traders rejected the highs. The 40 week moving average line is pointing up, but the weekly OBV line is pointing down. The MACD is above zero but has narrowed in the past few weeks which tells us that the strength of the trend is weakening.

In this daily point and number chart from PLNT below, we see a potential downside price target in the $ 66 range.

Conclusion strategy: People may return to their favorite gyms, but PLNT’s charts point to a decline in the coming weeks. Take your pulse and step aside for the time being.

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