PINS recently gapped from earning but failed and pulled into the previous gap up area. PINS had recently bottomed last year but broke out and is now in a strong uptrend holding the 20DMA. Following this gap up and pullback, PINS is now at the 20DMA and bounced off it on the 30m timeframe. This is considered a Holy Grail Trade where a trending stock holding the 20DMA pulls back into the 20DMA.
Entry - 23.61 Stop loss - 22.60 Target - 27
Trade closed manually
⋅
Playing some defense and closing this trade at breakeven. I realize the 200DMA will may provide significant resistance bringing the R:R down significantly. Furthermore, weakening markets require tougher stance on defense.