Peloton Interactive Inc (NASDAQ:PTON) stock just hit a major technical milestone — the Golden Cross.

While the stock has been down 10.40% year-to-date, it's up 10.49% in the past month and this bullish crossover signals the potential for more upward momentum.

A Golden Cross Workout For PTON Stock

The Golden Cross occurs when a stock's 50-day moving average crosses above its 200-day moving average, and for Peloton, that's exactly what just happened.

Chart created using Benzinga Pro

At a current price of $5.40, Peloton's share price is trading above its key exponential moving averages — five-, 20-, and 50-day — indicating strong buying pressure. The eight-day simple moving average of $4.79 and the 50-day SMA of $4.27 both flash bullish signals.

The Moving Average Convergence/Divergence (MACD) of 0.15 also supports the bullish case for Peloton, although its Relative Strength Index (RSI) of 66.53 suggests the stock is nearing overbought territory.

Meanwhile, Bollinger Bands ($4.46 to $4.96) indicate further potential upside.

Read Also: Peloton's Turnaround Is Happening

Pedaling Into Profitability?

Although Peloton has shifted its focus from hardware to software, the connected fitness company is still riding through a rough patch.

While software brings in higher margins, membership numbers are declining, and revenue was flat in the fiscal fourth quarter.

With debt refinancing offering some breathing room, there's speculation about a potential buyout. But this isn't the same high-growth stock it once was.

The Road Ahead: A Short-Term Play?

Despite its Golden Cross and bullish signals, Peloton is far from a sure bet.

With heavy debt, a shrinking user base, and a niche market, this could be just a short-term sprint. Caution is warranted for the long haul.

• Jim Cramer Recommends Holding On To This Car Manufacturer, But As For Peloton? 'Take The Loss'

Photo: Courtesy Peloton