Will PINTEREST INC- CLASS A breakout?

Our stock screener has detected a potential breakout setup on PINTEREST INC- CLASS A (NYSE:PINS). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:PINS.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall PINS gets a technical rating of 7 out of 10. PINS has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, PINS did better than 82% of all other stocks.
• PINS is part of the Interactive Media & Services industry. There are 73 other stocks in this industry. PINS outperforms 80% of them.
• PINS is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so PINS is lagging the market slightly.
• In the last month PINS has a been trading in the 25.22 - 28.90 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of PINS for a complete technical analysis.

How do we evaluate the setup for NYSE:PINS?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:PINS currently has a 8 as setup rating:

Besides having an excellent technical rating, PINS also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 28.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 27.68, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:PINS

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:PINS and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.