PINTEREST INC- CLASS A is setting up nicely for a breakout.

PINTEREST INC- CLASS A (NYSE:PINS) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:PINS.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to PINS. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, PINS is only an average performer.

• The long and short term trends are both positive. This is looking good!
• PINS is part of the Interactive Media & Services industry. There are 84 other stocks in this industry. PINS outperforms 71% of them.
• PINS is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PINS slightly outperforms the market at the moment.
• PINS is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Looking at the yearly performance, PINS did better than 70% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

Why is NYSE:PINS a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:PINS scores a 8 out of 10:

Besides having an excellent technical rating, PINS also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 26.7. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for PINS in the last couple of days, which is a good sign.

How can NYSE:PINS be traded?

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.

Our Breakout analyzer lists more breakout setups and is updated daily.