Long

The bottom could be in for Pinterest

Updated

Wave 3 would be next. News and sentiment has been negative appropriate for a wave 2 bottom.

High level substructures counted here easily count as complete 5 and 3-wave patterns.

This should be viewed with a long-term time horizon, 1 to 2+ years.

On log scale the 38.2 fib has not been met. However, the retracement from the all time high to the latest low nearly aligns with being .786 times the duration of the primary 5-wave rise.

Note

Looks like filling the gap at the .786 fib is the most attractive target short-term.

For long-term holders with 1-2+ year timeframes dollar cost averaging is opportune. Considering LEAP options if price gets down into the $27 level.

Trade active

Pulling the trigger on otm long call option for 2023. 78.6% fib has been hit. Not particularly worried about further downside for multiple reasons: 1) again, this is a long-term trade 2) PINS forward P/E is less than 24 while revenue grew 43% over last year and the company generated profit of 94M in Q3 with 15% margin. This is a value-growth company at the moment. 3) average revenue per user is overlooked for monthly active user growth and the potential for growing ARPU is huge fool.com/investing/2022/01/21/is-pinterest-seriously-a-value-play-right-now/

Another article with a great chart for perspective shows many stocks, especially tech, have corrected massively relative to their indices. The drawdown in the S&P 500 index "is masking the severity of this selloff" given its exposure to so-called bond proxy stocks and low-volatility equities, [J.P. Morgan] wrote, noting that low-vol stocks are trading at a record premium. My take is we've had a massive correction and many tech growth names are no longer trading at high premiums. This masked by indices showing less than 10% market corrections where a few names represent large proportions of the indices.

Note

Highly likely the bottom is in nearly touching the 61.8% Fib on log scale.
Easily able to count 5 of 5 of 5 of 5 of C

Kappy

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