Pintrest - Blowing up ! but what goes up must come down
NYSE:PINS Rule of nature - what goes up must come down. combine that with rule of velocity - faster you go the harder the crash!
Pinterest has exploded in less than 3 MONTHS (157 days) to an above 60$ price.
if we set the chart on a weekly time frame all we see is one big green candle, but correction is a must.
so let’s start with FUNDAMENTAL:
- with earnings of about 450 mil in Q4 and main emphasis on number of followers that grew to 442 million the stock skyrocketed to almost 70$, just before it fell back to the 60 line.
the earnings from advertisement in social media sector with these number of followers is expected to be higher, but because Pinterest is not Facebook and haven’t played in the big leagues long enough, these numbers caught investors eyes.
TECHNICAL SIDE:
stock is on a 25% angle from the moment it crossed the 20$ mark with consist supporting volume .
the convergence in the 50 line shows stability and i would be ok with saying that 50$ is the stock price.
Stochastic is overbought even after the correction from 70 to 59, and as it seems at the moment the stock is due to stay in the 50$ range.
Bottom line - I wouldn’t put a lot of hope in this stock crossing 70 so fast but I do see a great future to this company so in the long term it’s a definite buy, on the short i would say hold.
We analyze the market according to the MCBA method (market cycle based analysis) that we developed on combination between Elliot wave theory along with Volume cycle reading
the above is our personal opinion and never a trading advice or recommendation
Trade safe!
Pinterest has exploded in less than 3 MONTHS (157 days) to an above 60$ price.
if we set the chart on a weekly time frame all we see is one big green candle, but correction is a must.
so let’s start with FUNDAMENTAL:
- with earnings of about 450 mil in Q4 and main emphasis on number of followers that grew to 442 million the stock skyrocketed to almost 70$, just before it fell back to the 60 line.
the earnings from advertisement in social media sector with these number of followers is expected to be higher, but because Pinterest is not Facebook and haven’t played in the big leagues long enough, these numbers caught investors eyes.
TECHNICAL SIDE:
stock is on a 25% angle from the moment it crossed the 20$ mark with consist supporting volume .
the convergence in the 50 line shows stability and i would be ok with saying that 50$ is the stock price.
Stochastic is overbought even after the correction from 70 to 59, and as it seems at the moment the stock is due to stay in the 50$ range.
Bottom line - I wouldn’t put a lot of hope in this stock crossing 70 so fast but I do see a great future to this company so in the long term it’s a definite buy, on the short i would say hold.
We analyze the market according to the MCBA method (market cycle based analysis) that we developed on combination between Elliot wave theory along with Volume cycle reading
the above is our personal opinion and never a trading advice or recommendation
Trade safe!
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