Pinterest Inc was trading about 3.6 percent higher on Thursday in an uptrend counter-rally to the long-term downtrend the stock has been trading in since Oct. 20, 2021.
Short-term bullish cycles take place within all long-term bearish cycles and although Pinterest looks set to trade higher over the coming days at least, the stock has a lot of work to do to prove the bottom is in.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend….