Chart of the Week: Coinbase
As you can see from back late in 2023, the stock (Coinbase) was on fire. It was really moving well. You can see that from here with the candles being light blue – literally for the full month of November and December – faltered a little bit here, corrected back down to some moving averages, which we often see after a big run like this. Came back down to this 50 day and 14 day McGinley moving average here.
In the meantime, the candles turned from a strong bullish, which is light blue, to a modestly bullish or cautiously bullish, and all the way down to purple. It looked like the stock was ready to roll over. We gave it the benefit of the doubt. We let it bounce off the moving averages, and it did.
You can see now the candles have moved from purple all the way up to amber color to teal and right back to blue again.
Some would say that it’s showing the qualities of a double-top over here. I guess you could say that, if it breaks down below these moving averages over here, but that is a far way to go to get down to breaking this trend.
I think that more likely the stock is in for a short-term rest over here, and it’s going to make a move past this $184-185 level, which were the highs last week.
MACD, stochastics, and other indicators are looking good
We see the indicators down below.
MACD is on a buy signal.
We see stochastics are still overbought and embedded right now.
We can see what happens when the stochastics get embedded. When they get above the 70% level on the stochastics and it stays up there, it means that any dip is being bought. And you can see as the stock was moving up in November and December with this really strong trend from about $75 all the up to about $180 – more than a 100% gain in about two months, which is pretty impressive. Any dip that was happening during the day – it’s hard to see it on the chart here – was being bought as the stochastics was telling you here.
Chaikin money flow at the bottom over here is still positive. It’s come off a little bit, as I suspect after last week’s earnings and that nice run from $109 all the way up to $185-187 – the stock was due for a little breather. Money was coming off the table. Not a problem.
We do see good strong volume bars down over here.
All in all, I think Coinbase is a strong name here. It’s got really great technicals. Obviously the fundamentals are working well, too.
We can look back at the weekly chart here for a moment. You can see the all-time high comes in around $350 – 370. Look at this weekly chart – very very strong weekly chart too.
More upside is coming
We can certainly see some upside here. If we can get another higher high and higher low this week and close above $185-188, perhaps we’ve got some room at least to get back up to this $330 level. That’s a long way to go, but this is being driven by Bitcoin. And if Bitcoin remains solid and strong, we can certainly see Coinbase doing just as well.
So that’s Coinbase; COIN is the symbol.
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