PINTEREST INC-CL A (NYSE:PINS) has been identified as a potential breakout candidate by our technical screening tools. The stock shows a combination of strong technical health and a high-quality setup pattern, making it an interesting prospect for traders. Below, we break down the key factors supporting this view.
Technical Strength
PINS currently holds a Technical Rating of 7, indicating a solid uptrend. Key points from the technical report include:
- Both the short-term and long-term trends are positive, reinforcing the bullish momentum.
- The stock is trading in the upper part of its 52-week range, though it slightly lags behind the broader S&P 500.
- Recent price action has been strong, with PINS gaining 7.95% over the past month and 44.62% over the last three months.
- Moving averages (20-day, 50-day, and 200-day) are all trending upward, supporting the positive price structure.
Setup Quality
With a Setup Rating of 9, PINS presents a compelling consolidation pattern:
- Prices have been trading in a tight range ($33.35 - $37.04) over the past month, suggesting a potential breakout opportunity.
- A support zone between $35.41 and $35.81 provides a clear stop-loss level for traders.
- A recent Pocket Pivot signal—a bullish volume/price pattern—adds further confirmation of accumulation.
- Minimal overhead resistance exists above the current price, increasing the likelihood of an upward move if the breakout occurs.
Trade Setup Suggestion
The technical analysis suggests a possible entry at $37.31, just above the current resistance level, with a stop-loss placed below the support zone at $35.40. This setup offers a 5.12% risk per trade, which aligns with disciplined risk management strategies.
For more breakout opportunities, check our Technical Breakout Setups screener, updated daily.
Disclaimer
This is not investment advice. The observations are based on technical analysis at the time of writing, and market conditions can change. Always conduct your own research before making trading decisions.
