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  • Writer's pictureTLivingstonBlog

Pinterest- A Chart Worth "Pinning" Up

Social media favorite Pinterest may be forming a chart that is worth "pinning up." There are a few things I really like about PINS' action over the last few weeks. First, it consistently held above its' 200-day moving average while other stocks such as Facebook, NIO, Amazon, Peloton, and Zoom had much steeper declines in March. In addition, there was clear support coming in around the $60-$65 range, indicating strong institutional demand. Moreover, the weekly chart shows lots of accumulation over the past few months and not much distribution. Despite doubling from its' September 2020 breakout, PINS has been consolidating rather orderly over the past few months which is a bullish indication that higher prices may be in PINS' future.

From a fundamental perspective, Pinterest continues to impress with three quarters of accelerating sales and two quarters of triple-digit earnings. It is also estimated to have strong annual earnings in 2021 and 2022. Large liquid leaders like Pinterest which exhibit strong price action combined with exceptional fundamentals often become institutional favorites as funds look to invest in popular growth names. This seems to be the case with PINS as it has seen the number of funds owning it increase in each of the last four quarters.

I recently opened a position in Pinterest as it retook its' 50-day moving average. Let's see if continues to form a chart that's worth "pinning up."

To learn more about swing trading and trading in general, visit my course page.

Full Disclosure: I currently own Pinterest.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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