Pinterest Stock Rises 3.72% on Two-Day Rally as Technical Indicators Signal Mixed Outlook

Pinterest (PINS) has surged 3.51% in the most recent session, extending its upward momentum for two consecutive days with a cumulative gain of 3.72%. The stock’s price action reflects a potential short-term bullish bias, but deeper analysis of technical indicators is required to assess the sustainability of this move and identify key levels for further evaluation.

Candlestick Theory

Recent candlestick patterns suggest a mix of bullish and bearish signals. A strong green body on the 2025-09-15 session, closing near the high of $36.26, indicates buying pressure. However, the preceding session (2025-09-12) showed a narrow range with a close near the mid-point, suggesting indecision. Key support levels emerge at $34.20 (a prior trough on 2025-08-11) and $33.10 (a multi-week low in May 2025), while resistance is likely to test at $37.95 (a recent high on 2025-09-08) and $38.57 (a peak in early September). A bullish engulfing pattern could form if the price retests $34.20 with strong volume, but a breakdown below $33.10 may signal deeper bearish momentum.

Moving Average Theory

Short-term and long-term moving averages (50-day, 100-day, 200-day) reveal a mixed trend. As of the latest data, the 50-day MA (~$34.80) is above the 100-day (~$34.10) and 200-day (~$33.60), suggesting a bullish bias in the intermediate term. However, the current price (~$36.26) sits above the 50-day MA, reinforcing the near-term uptrend. A crossover of the 50-day MA above the 100-day MA in recent weeks has acted as a buy signal, but the 200-day MA remains a critical psychological level. If the price consolidates below the 50-day MA, it may indicate weakening momentum and a potential shift in trend.

MACD & KDJ Indicators

The MACD line has crossed above the signal line, forming a bullish crossover, with a histogram showing expanding positive divergence. This aligns with the recent price rally but may suggest overbought conditions. The stochastic oscillator (KDJ) shows the %K line (~75) and %D line (~68) in overbought territory, indicating a potential pullback. A bearish divergence is observed if the price makes a new high but the %K line fails to do so, which could signal a reversal. Meanwhile, the RSI (~62) is approaching overbought levels, adding caution for further upward moves without a consolidation phase.

Bollinger Bands

Volatility has expanded in recent sessions, with the upper band (~$37.50) and lower band (~$33.50) widening. The price has tested the upper band multiple times, suggesting overbought conditions and a potential retrace. A contraction in the bands is observed during quieter sessions (e.g., 2025-09-12), which may precede a breakout or breakdown. The current position near the upper band (~$36.26) implies caution, as a break above could extend the uptrend, while a retest of the lower band may trigger short-term selling.

Volume-Price Relationship

Trading volume has surged on recent bullish sessions, with the 2025-09-15 session seeing 7.7 million shares traded—a 35% increase compared to the 5.8 million average over the past week. This volume validates the price strength but may also indicate exhaustion if the trend continues without a proportional increase in volume. Conversely, the 2025-08-08 session saw a 10.3% drop on high volume (37.5 million shares), confirming a bearish breakdown. Divergence between volume and price could signal a loss of conviction in the current trend.

Relative Strength Index (RSI)

The RSI (~62) is approaching overbought territory but has not yet breached the 70 threshold. Historical data shows the RSI frequently oscillates between 40 and 70, with key oversold levels (~30) acting as a buying opportunity. However, the recent backtest of an RSI-based strategy (buying at 30 and holding for 5 days) yielded a -4.86% return from 2022 to 2025, underperforming the benchmark by 51.94%. This suggests the strategy may be ineffective in current market conditions, possibly due to prolonged overbought periods or lack of follow-through in breakouts.

Fibonacci Retracement

Applying Fibonacci levels between the recent high ($38.57 on 2025-09-09) and low ($27.93 on 2024-11-08) identifies key retracement levels at $35.70 (61.8%), $34.30 (50%), and $32.90 (38.2%). The current price (~$36.26) is near the 61.8% retracement level, which could act as dynamic resistance. A break above $35.70 may target $38.57, while a drop below $34.30 could test $32.90. Confluence between Fibonacci levels and moving averages (e.g., $34.80) may enhance the significance of these zones.

Backtest Hypothesis

The underperformance of the RSI-based strategy highlights the importance of confluence with other indicators. For instance, the strategy’s failure may stem from relying solely on RSI without incorporating volume or trend alignment. A refined approach could integrate RSI oversold signals with bullish candlestick patterns (e.g., hammer or morning star) and a positive MACD crossover to filter higher-probability trades. Additionally, adjusting the holding period from 5 days to 10 days may allow for better capture of trends, as the current strategy’s short horizon may have missed post-breakout momentum. However, the historical maximum drawdown of 0.00% suggests the strategy lacked meaningful downside protection, further emphasizing the need for multi-indicator validation.