Pinterest, Inc. and Snap, Inc. have been trading in a fairly tight horizontal pattern, which indicates consolidation.
The consolidation has been in response to the two social media stocks being heavily beaten down over the course of many months, where Pinterest plunged over 64 percent from its Feb. 16, 2021 all-time high of $89.90 and Snap declined about 60 percent from the all-time high of $83.84, which was reached on Sept. 24 of last year.
The horizontal trading patterns have both been created on average or lower-than-average trading volume, which indicates an expected or low level of investor interest. Low volume levels also indicate a stock is running out of both buyers and sellers, which is often preceded by an influx of either bullish or bearish volume to break the security either up or down from a horizontal pattern.
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