Pinterest Inc PINS shares traded lower Tuesday following a downgrade from Guggenheim.
Analyst Michael Morris downgraded the stock from a Buy to a Neutral rating and lowered the price target from $46 to $39. This pushed Pinterest further below a technical channel it traded in.
Pinterest closed Tuesday down 9.01% at $33.13
Related: Why Pinterest Shares Are Falling Today
Pinterest Daily Chart Analysis
- The stock has fallen below the downward trending channel that it has been trading in for the past few months. Pinterest has been in a downtrend for a long time and is looking for a bounce back and higher lows.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish. Each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been trading sideways below the middle line for a time and now sits at 34 on the indicator. This shows that the sellers in the stock have been in control for a while and the stock is near the oversold region.
What’s Next For Pinterest?
Pinterest has been in a heavy downward trend for months and received another downgrade from an analyst. This gives the stock a further bearish outlook for the future as the company sits. Bullish traders are looking to see the stock bounce and start to climb once again forming higher lows on the chart. Bears are in control of the stock and would like to see it continue to trend lower and stay below the moving averages.
Photo: Souvik Banerjee on Unsplash
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.