PINS trade ideas
$PINS Bullish patternNot financial advice,
$PINS currently creating higher highs and higher lows in this uptrend in white triangle usually a bullish pattern, but will need to break the broadening formation in blue to confirm. fail to do so and we will head to the lower part of the formation!
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PINS Short 3.10 to 4/14 following Fri 3.10 OpeningPINS continuing its descending micro-pattern following Earnings (see PEAD Project) towards a low range of 22.87-23.86 prior to its next Earnings period.
Selling Call Credit Spreads following the brief push-up pre-market on 3/10/23 at 24.5/26 (deltas == -0.57 / 0.42).
Consider closing or rolling up/out if loss == 25% OR price exceeds 26
Take profit at 55-65%.
Chart Reading: PINS on the move finally? PINS may be on the move ... but has to first contend with 2 heavy congestion zones ahead.
This chart reading uses MA's, simple VPA (Volume Price Analysis), MACD/Momentum and "built-in" Bar Strength analysis
The weekly view is much easier to see given the high volatility on the daily TF .. there's finally some positive sentiment building up on the weekly - the weekly also shows that recently there is (relatively) good reaction to up moves and weak reaction to the downside ...
let's keep an eye on PINS
thoughts & comments ?
PINS: cup and handleIt is time to put an alert on PINS. The stock has been very constructive for the past year putting in a rounding bottom. From an Elliot Wave point it counts as a leading diagonal with fib targets almost in the money. It has created the cup of the cup and handle pattern and the handle is being formed right now. over the next weeks I will keep a close eye on $21 - $19.5 level. If the bounce makes a micro 5 wave moves up (in 15 min or 30 min time frames), I will contemplate a significant portion of my capital into PINS for a strong swing up toward $50 target by end of year. For now, a few more weeks of patience is required.
'Jade Lizard' Trade Idea for a 3/3 Expiration$PINS 'JADE LIZARD'
Pinterest has been great for iron condors the last six months as it has been ranging between $20 and $27.
A similar neutral strategy is a 'Jade Lizard', which is combining a short put with a call credit spread. The idea is that the premium credit from the short put needs to be sufficient to cover the max loss of the call credit spread. And in doing so, the jade lizard setup has no risk to the upside. One thing that is nice about the jade lizard compared to the short iron condor is that if the share price falls and triggers assignment on the short put, the trader now possesses something to show for their troubles, namely shares, which they can now use to sell [aggressive [ calls with in order to get back to breakeven or profitability. With an iron condor, once you take your loss you can't do much about it, except for rolling the losing side into an even riskier credit spread further out. Of course the counter argument is that the holding the shares from a short put could be riskier overall than walking away from the defined risk of a credit spread. In any case, it would be wise to pick a stock, like $PINS, that is expected to fare relatively well in the current market.
If the call credit spread is violated and the short call is in the money, the trade will need to be closed manually before close on expiration day.
$29 Call 3/3 buy
$28 Call 3/3 sell
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$24 Put 3/3 cell
Total Credit ~$156.
Collateral $2,400 for short put.
Renewed MomentumAfter the short attempt to retrace and the close of the 4 hour window we've got a sharp spike up which I consider being a signal for renewed strength. As we still are trading in a broad range I prefer to trade the 4 hour only not yet looking at longer terms. The more that I assume to whole stock market rather running sidewards in the next time.
Learn Patience The whole picture. Trading in a nutshell. Big consolidations know matter the form; triangles, pennants, or rectangles... etc. A good trader has a lot of patience. So, at the moment we are in a good rectangle base consolidation, it could change to another form. The trade and the hope would be that in time we breakout to the upside of the consolidation for a big move to the long-term downtrend line. Could always breakdown to the downside and we would have a short. The lesson here is patience in your trading journey. Good luck to all and God bless.
Pinterest's gains to be capped.Pinterest - 30d expiry - We look to Sell at 26.74 (stop at 28.01)
The primary trend remains bearish.
The trend of higher highs is located at 26.80.
In our opinion this stock is overvalued.
Early optimism is likely to lead to gains although extended attempts higher are expected to fail.
Preferred trade is to sell into rallies.
Although the market broke to the upside in early trade, bespoke resistance at 26.80 capped the gains.
Our profit targets will be 23.61 and 23.11
Resistance: 25.50 / 26.80 / 27.50
Support: 22.80 / 22.00 / 20.80
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