More education here on Pinterest, guys. Look at this. Look at this RSI down here at the bottom of the chart. A nasty 23.15 daily RSIs. We have anything under 30 is considered oversold near-term.
And it doesn't take a rocket scientist to realize that with continuous red uh candles here on the chart. Now, we hit a key level of support today. Now, first though, before I get to that, I want to show you uh what's going on on the larger time frame.
You can see I've got a pivot high back in September of last year, drawn down to the next pivot, and that distinguished the location in which price broke out. You can see, I'll get rid of this RSI, zoom it out a little bit more.
When we tried to attempt this breakout, look at the consolidation that needed to take place before we eventually broke out. Now, when price breaks out, what does it like to do?
It likes to retrace to this trend line and bounce. Now, this is a sharp declining trend line, one of which that may be very hard for it to get hit, considering how oversold it is, at least now in the near term.
So, very much like last chart, what do I do? Pull up my fib retracement tools, take it from the most recent low to the most recent high. And boom, you see this level, the 618 fib retrace, $18.38.
This fib retrace is one of the strongest retrace levels. specifically if we haven't seen any other bounces on these other levels before. And guys, we haven't. So, this area very well could be the location of the bounce.
But if you're a conservative trader, you can wait for price and if it plunges over the next couple days to touch and get into the 786, which would be much closer to this declining trend line.
Nonetheless, you could also spread it out. Enter a little bit here, pick up a little bit here, get ready for a technical bounce, a bounce that could, as long as it gets legs, and pins has some good fundamental news, could go back up and attack this inclining trend line.
That would be one heck of a recovery. But, uh, more or less, it certainly could attempt to come back up and fill this gap. Uh, we'll see though, uh, down the road how well pins does on this bounce.
