Fitbit Inc (NYSE:FIT) finished the session Friday at the highest close since May on strong volume. The stock has been trying to close above the key resistance level at 16 a couple of times, but each attempt has been unsuccessful with the stock price each time retracing.
However, and based on the volume of the last two sessions, the breakout seems to be round the corner and once it closes above the 16 level, you could possibly get into the stock, with a stop loss of around 15.45 and look for targets of closer of 18 over the next weeks.
Beyond that, the above daily technical chart is also supporting the bulls. It shows a bullish MACD crossover and KD line is indicating an upward swing. Plus, all EMAs are starting to move up and the RSI is also rising above its 50% level. This chart is clearly telling us that the place to be in FIT is on the long side.
If a breakout occurs, we could see momentum that could move the stock to around the 17.50-18 area, but would not be surprised to see it above this range by the end of this year.