Pinterest has exploded in less than 3 MONTHS (157 days) to an above 60$ price.
if we set the chart on a weekly time frame all we see is one big green candle, but correction is a must.
so let’s start with FUNDAMENTAL:
- with of about 450 mil in Q4 and main emphasis on number of followers that grew to 442 million the stock skyrocketed to almost 70$, just before it fell back to the 60 line.
the from advertisement in social media sector with these number of followers is expected to be higher, but because Pinterest is not Facebook and haven’t played in the big leagues long enough, these numbers caught investors eyes.
stock is on a 25% angle from the moment it crossed the 20$ mark with consist supporting .
the convergence in the 50 line shows stability and i would be ok with saying that 50$ is the stock price.
is overbought even after the correction from 70 to 59, and as it seems at the moment the stock is due to stay in the 50$ range.
Bottom line - I wouldn’t put a lot of hope in this stock crossing 70 so fast but I do see a great future to this company so in the long term it’s a definite buy, on the short i would say hold.
We analyze the market according to the MCBA method (market cycle based analysis) that we developed on combination between theory along with cycle reading
the above is our personal opinion and never a trading advice or recommendation