Pinterest Could Be Setting Up for a Bounce
Pinterest has several catalysts lining up
Growth stocks have been in a world of pain, but it does look like the group is trying to bottom. Just like at Pinterest (PINS).
I like to look for 35% to 50% declines in high-quality growth stocks. That’s when I start to poke around the group and accumulate these names. Historically, that’s a great time to get long, although the post-COVID rally makes that rule of thumb a little more difficult to maneuver.
In any regard, Pinterest is trying to find its footing. Here’s some encouraging signs I’m seeing in this one.
Trading PINS Stock
In looking at the weekly chart, I see five consecutive weeks of decline, followed by a doji-ish hold of the 50-week moving average.
That comes after three consecutive weeks of declining volume and a little bit of divergence on the Williams %R reading. Does that guarantee a bounce is coming?
Of course not.
While there are signs of a possible bounce, we need confirmation and that comes through rotation.
What I would love to see here is a rotation over last week’s high at $60.34. That gives us all of the observations above plus a weekly-up rotation. That could put the 10-week moving average in play, currently near $69.
On the flip side, the risk is that PINS stock gives us a weekly-down rotation below $53.94, potentially putting more downside in play.
Let’s be patient and wait to see which opportunity unfolds. I’m looking for a bounce, but am open to new developments. Cheers!
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.