This is free post about a new stock I am monitoring. The stock is Fitbit (FIT: NYSE) and came into my view yesterday due to a spike in trading volume. I’ve since found that this uptick was helped by a recent report mentioning this stock is undervalued. FIT ticks many boxes of my trading criteria though because it has experienced a previous High, is coming off Lows after a period of apparent basing behaviour and is breaking above Resistance on higher Volume.

FIT weekly: Fitbit has history up at $50. Note how there is some S/R near $30 and this is also near the 50% Fibonacci level so this would be the longer-term target for any bullish continuation.  Price action has been under $7 since Feb 2017 but is now sticking its head above this resistance level. A weekly close above $7 would be bullish:

FIT daily: I am watching for any weekly close above $7 to trade this stock. FWIW: my TC system actually gave a LONG signal off the daily chart on May 25th:

FIT weekly Cloud: Price action is finally sticking its head above the resistance of the weekly Ichimoku Cloud and there has been an uptick in trading Volume. I will be watch to see if this holds with the weekly close though:

Options: The July 20 $7 Put is currently 0.32 cents which looks enticing.

Summary: I will be looking to go LONG on Fitbit if there is a:

• weekly close above $7.
• break above the weekly Ichimoku Cloud.
• hold with the uptick in trading Volume