Over the years, there have been a ton of posts about Planet Fitness (PLNT) written both by me and others. This thing is such a tricky beast! Just look at this:
Some observations about the highlights above, read from left to right………
- The magenta tint showed a breakdown from the right triangle pattern. The price fell, as it should have, and it retraced back to the pattern, as it should have. It then proceeded to rip right back into its ostensibly broken pattern (sort of like, umm, the entire equity market over the past month).
- The green tint highlights a breakout from the same right triangle pattern. This time, it behaved As God Intended ™, since it was a bullish signal that led to a substantial move higher.
- Next, the pink tinted area highlights a pretty well-formed head and shoulders reversal pattern which produced precisely the kind of result you would expect. Indeed, the wipeout in the stock has been epic following the breakdown marked with the arrow.
One thing is certain: PLNT certainly likes forming chart-based signals!
