Pinterest (PINS) : [ Technical Outlook]
Chart Source: Tradingview.com 12th aug 2021
Pinterest (PINS) is an American image sharing and social media service designed to enable saving and discovery of information on the internet using images and, on a smaller scale, animated GIFs and videos, in the form of pinboards. During the pandemic, as more people was forced to stay home, Pinterest along with many other stock home stocks all saw a vey good run up but as the economy starts to open up these once loved stay home stocks are taking a beating.
PINS saw about a 27% drop in their share price since the high in Feb and the recent gap down in late July was due to a disappointing results. It was more of their user growth that disappointed falling 5% year over year to 91 million but weakness in this area was expected as the economy was reopening. However, Pinterest had guided for U.S. MAUs (Monthly activate users to be roughly flat with the year-ago period but the 5% was worse than what investors expected hence a sell down
Moving into the next quarter, the company didn’t provide an outlook for third-quarter MAUs, citing uncertainties surrounding the pandemic. However, in the earnings release, it said: “Engagement headwinds on Pinterest have continued in July.
Technical Perspective :
So lets take a look at the chart and see what might happen to Pins. We can see support at around the $55.60 level where it bounced off last night and regained from footing at the $56.80 level. The previous support in May was also around the $56 level and after consolidating there it started to move up. We might see some similarity now, so some consolidation and a move up to $60 first. There is the gap resistance and if momentum manages to push through we might start seeing it move to $65. This is more of a rebound trade and possible some short squeeze if the price starts to bounce back. The next support level is at $52.
What’s your thoughts on Pinterest? Share it with us, we’ll love to hear it.
Yours
Humbly
Kelwin&Roy
