Fitbit $FIT has been struggling, but I think price is low and has been in accumulation since 2017. I am considering a position play around $5-$5.25, with a stop around $4.00 and a target of $7.50 and then $9.70. It should be noted that price dropped sharply during the 2/28 session despite a strong Q4 earnings report. Here's a summary from Barron's:The back story. After a multiyear slide, shares of Fitbit have delivered solid gains in recent months. The company is in turnaround mode and trying to become less of a fitness tracker and more of a watch maker and wellness platform. A few positive signs on that front had sent shares up 38% in 2019 to $6.87. Analyst estimates for 2019 have been improving in recent months. Heading into tonight’s report, Wall Street saw the company losing 17 cents a share this year. Four months ago, Wall Street expected a loss of 23 cents a share.What’s New. Fitbit’s latest outlook suggests Wall Street might have gotten too optimistic. While revenue ($571 million) and adjusted profit (14 cents a share) for the fourth quarter were both slightly better than expected, Fitbit forecast a 2019 adjusted loss per share of 22 cents to 24 cents, a good bit wider than expected.That guidance overshadowed more positive news from the company, which also forecast that 2019 revenue would grow from 1% to 8%. That would mark the company’s first year of sales growth since 2016. Shares fell 12% in after-hours trading to $6.07.Looking Forward. In an interview with MarketWatch today, Fitbit CEO James Park said the company is focused on finding ways to monetize its user base in the coming year. Investors have, at times, been excited about Fitbit’s collaboration with insurance plans that hope to driver healthier lifestyles through the company’s devices. Fitbit said it expects “approximately $100 million” worth of sales for its health-solutions business in 2019. Fitbit expects total 2019 revenue between $1.52 billion and $1.58.From Fitbit Stock Is Falling Because Analysts Had Expected Great News, Not Merely Good News (Barron's)Fitbit Daily Chart(click to enlarge)Trade Assessment:- Let's say we have an entry at $5.25 and a stop at $3.90. - We have a target of $7.50 at which we would take half of the position off, and a target of $9.70 for the rest of the position. - Meanwhile, if $7.50 is reached we have a trailing stop at $5.80. - What we do here is, we will average the potential targeting-hitting scenarios.1) hit $7.50 then $9.70: $8.602) hit $7.50 then $5.80: $6.65Average of these two scenarios: $7.62- With a stop at $3.90 and average target of $7.62, this trade offers a reward to risk ratio of around 1.76:1- In general, this trade has a barely satisfactory reward to risk ratio and is a trade I will consider with low priority. - In other words, I will be looking to deploy dry powder else where, but if I have some extra cash I haven't allocated at the time FIT is around $5.25, I wouldn't mind opening a position.