Pinterest has been on my radar after seeing the stock hold up relatively well during the high-growth tech selloff earlier this year. PINS stock did come down, but it held up much better than many of its peers.
However, after a strong rebound from the March lows, growth stocks came under pressure on Wednesday, as the overall market also reversed. Still, the momentum that PINS stock had in early trading has it on my radar.
Maybe some people view PINS stock as a bearish setup. However, I view its relative strength vs. other growth stocks as an impressive feat. Plus, it has great fundamentals.
In any regard, Wednesday’s action gave us a false rotation. Shares quickly went monthly-up over the March high at $85.10. A few minutes later PINS stock went weekly-up over last week’s high at $86.11.
If bulls can grab control of the stock, they will try to pull off this rotation again before the end of the week. In an ideal world, they will do just that and try to jam Pinterest stock up to new all-time highs north of $89.90.
Above $90 and that opens the door to $100, in my opinion. If we do get a further acceleration, the 161.8% extension could be in play near $108.
On the downside, a close below the 10-day moving average saps the short-term momentum in PINS stock and puts the 50-day and 10-week moving averages in play.