$FIT chart review (see notes)

Fitbit is seeing cumulative selling being replaced with buyers.

Bar Chart (daily)

daily barchart TradingView

 

Point and Figure Chart

PnF count

 

Bar Chart (daily)

What I would suggest traders not miss it the large selling volume highlighted below that was unable to push prices below support.  This action was absorption of supply by “strong hands.”  Those who were unsure were left chasing the following day.  The same observation is present though.  Here we see strong buying that barely broke resistance because profit taking was present.  Next, we see price trade lower into support.  This is an important observation because the drop in value did not result in increased selling pressure.  It would appear supply is in strong hands.

The next few sessions may include the transition from an accumulation phase to that of a potentially rewarding markup phase.

 

daily barchart

 

Wyckoff Distribution Schematic

Fitbit started a distributive phase two months following the IPO

distribution

 

Wyckoff Accumulation Schematic

After 4 months of DISTRIBUTION and 4 months of MARKING DOWN we are seeing characteristics of ACCUMULATION.

Accumulation

 

Good Luck!

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