Hello Traders,
Pinterest (PINS) popped in after-hours trading on Thursday night to a new multi-week high after the earnings were announced.
The following session the stock opened with a massive gap up and make it`s high in the very first minutes of the session @ $27.25 and declined for the remainder of the session. It closed the day @ $25.20, and leave the gap open!
What is to expect next and how does it fit into the wave structure?
Let`s have a look.
Under the assumption that the high at $35.29 was a wave „3“ the following decline fit`s good into the view of a „three-down“, here the expanding“ version and declined a little bit below the 1.618 Fibonacci Extension of it.
After this, the stock starts to recuperate and shows a clear „five-up“ pattern with today`s pop to the upside. The to me question is? Was this all of the advance and PINS will correct at the coming seesion strongly or was it a series of „one`s and two`s, or, at least, is just sa wave „1“ of higher degree done or close to do so?
Let`s look.
The weekly candle is bullish with a long upper shadow and reversed at the 0.5 Fibonacci of the past decline from 36.83-17.33! The daily view shows a red candle, i.e. bearish, and leave the gap open. So it could be possible, that a wave (v) of ((i)) was done at yesterday`s session and a sharp and brief correction will be next. Investors would think that the bear-market is back for PINS and start selling the stock once again. Evidence for this argument will be seen if a wave „3“ will occur in the coming days and weeks, when seller realize, that they are at the wrong side of the market and PINS will gap massive to the upside, as it happened with the stocks of TESLA at the past two weeks.
Another argument could be, that PINS has done some „one`s and two`s“ to the upside and will advance at the coming session within a strong and sharp advance tot he upside (may with more gap`s to the upside) into the range of 29.38 (0.618 Fibonacci) at minimum!
Or was it just a wave „b“ which is still in progress and a decline below the level of 17.33 is next to occur, that possible will eliminate PINS off the board?
While different options exist we have to wait for Monday`s session and will have an eye on the performance of PINS. I will update the chart in the coming sessions.
Have a great weekend...
Feel free to ask or comment.
Trading this analysis is at your own risk!
PS: the editor is invested at PINS!
Pinterest (PINS) popped in after-hours trading on Thursday night to a new multi-week high after the earnings were announced.
The following session the stock opened with a massive gap up and make it`s high in the very first minutes of the session @ $27.25 and declined for the remainder of the session. It closed the day @ $25.20, and leave the gap open!
What is to expect next and how does it fit into the wave structure?
Let`s have a look.
Under the assumption that the high at $35.29 was a wave „3“ the following decline fit`s good into the view of a „three-down“, here the expanding“ version and declined a little bit below the 1.618 Fibonacci Extension of it.
After this, the stock starts to recuperate and shows a clear „five-up“ pattern with today`s pop to the upside. The to me question is? Was this all of the advance and PINS will correct at the coming seesion strongly or was it a series of „one`s and two`s, or, at least, is just sa wave „1“ of higher degree done or close to do so?
Let`s look.
The weekly candle is bullish with a long upper shadow and reversed at the 0.5 Fibonacci of the past decline from 36.83-17.33! The daily view shows a red candle, i.e. bearish, and leave the gap open. So it could be possible, that a wave (v) of ((i)) was done at yesterday`s session and a sharp and brief correction will be next. Investors would think that the bear-market is back for PINS and start selling the stock once again. Evidence for this argument will be seen if a wave „3“ will occur in the coming days and weeks, when seller realize, that they are at the wrong side of the market and PINS will gap massive to the upside, as it happened with the stocks of TESLA at the past two weeks.
Or was it just a wave „b“ which is still in progress and a decline below the level of 17.33 is next to occur, that possible will eliminate PINS off the board?
While different options exist we have to wait for Monday`s session and will have an eye on the performance of PINS. I will update the chart in the coming sessions.
Have a great weekend...
Feel free to ask or comment.
Trading this analysis is at your own risk!
PS: the editor is invested at PINS!