PINS' 40-day moving average could help it climb back up on the charts
The shares of Pinterest Inc (NYSE:PINS) have taken a breather since their recent Dec. 23 record high of $75.44. Today, however, the equity is seeing modest gains, up 0.6% at $68.21 at last check -- enjoying an impressive 266.2% year-to-date lead. Even better, PINS' recent pullback has it near a historically bullish trendline, which could serve to push the stock higher in the coming weeks.
More specifically, PINS just came within one standard deviation of its 40-day moving average, after spending most of 2020 above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, five similar signals have occurred during the past three years. One month after each signal, PINS was positive 60% of the time, averaging a swing of 7.9%, regardless of direction. From its current perch, a move of similar magnitude would put the stock up past $81, a new all-time high.
Meanwhile, there is still plenty of pessimism left to be unwound, which could push the security even higher. Though short interest has dropped 15.3% during the last two reporting periods, the 13.71 million shares sold short account for 15.9% of the stock's available float.
Lastly, now seems like a decent time to weigh in on Pinterest stock's next move with options. The security's Schaeffer's Volatility Index (SVI) of 57% sits in the 17th percentile of its annual range, meaning the stock is currently sporting attractively priced premiums.