PINS has come into significant resistance as this bearish harmonic completes. Trimming positions or hedging a pullback would be prudent coming in to this zone. Entering a new position right now is not recommended as cheaper prices in the coming days are likely. The pattern is invalidated with a daily close above 90.
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My 80 target hit with move to 75.
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Here is a follow up chart for how I trade these harmonics. My original post was mainly meant as a warning to take some profits or to avoid a long. This chart details how I would have approached it as short. Of note is that this was a daily pattern. My stop on lower time frame harmonics is always placed just above the 1.13 fib extension from the X point. Because the risk is large on the daily patterns I always look for a lower time frame reversal pattern before entry and use the lower time frame to control risk. My targets are always the fib retracements. Once price makes a lower high I start trailing stops.
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Someone asked about going long now after the big drop. The T3 target zone is where I would be looking to go long or add back to a position. Its not recommended to buy just because the stock has dropped a lot in one day. Some times you will get a quick bounce, but usually there is more selling to come and it is better to get confirmation with a basing pattern before entry. I'll be watching the 72/74 area near the trend line I've drawn and the 618. Good luck.
