Coinbase - Trading in the channel - Multiple Entries
Coinbase reminds me a lot of BNB in the crypto market (2021 days).
Coinbase has done remarkably well in the past one year.
Earnings were good but investors/traders shunned the stock. The reasoning came down to costs increasing even though revenue estimates were knocked out of the park.
The other reason mentioned, I believe this has more merit, Bitcoin prices.
If Bitcoin goes higher, the whole space gets a jump. It attracts more people who have left the space or first time buyers to get into the crypto again.
Bitcoin is trading above 60k. Needs to get above 66k and then all time highs for Coinbase to really get going. A lot will be revealed on the release of PPI and CPI data today and tomorrow.
Looking at the stock individually, fundamentals are rock solid.
Technically, we are going towards at 180 region (box shaded in chart), where I would expect a lot of shorts to cover and buyers to step in. Ideally, I want to see it visiting the area for about an hour max and then spring boarding higher. The above scenario would be a good position to take 1st entry and then breaking of 213 trendline area would be an area to add position.
Stops will be very tight on the 1st entry. Probably below pivots.
Alternatively, if CPI and PPI comes in weaker, we could see a break of 213 intraday and I would go with the break and stops sitting below 205.
I would be more inclined to take position only after CPI data release and if PPI comes in super weak, might take a small position.
I have laid out a lot of scenarios here. See which one fits your style and I will be updating the idea once I have skin in the game.
Goodluck!
Coinbase has done remarkably well in the past one year.
Earnings were good but investors/traders shunned the stock. The reasoning came down to costs increasing even though revenue estimates were knocked out of the park.
The other reason mentioned, I believe this has more merit, Bitcoin prices.
If Bitcoin goes higher, the whole space gets a jump. It attracts more people who have left the space or first time buyers to get into the crypto again.
Bitcoin is trading above 60k. Needs to get above 66k and then all time highs for Coinbase to really get going. A lot will be revealed on the release of PPI and CPI data today and tomorrow.
Looking at the stock individually, fundamentals are rock solid.
Technically, we are going towards at 180 region (box shaded in chart), where I would expect a lot of shorts to cover and buyers to step in. Ideally, I want to see it visiting the area for about an hour max and then spring boarding higher. The above scenario would be a good position to take 1st entry and then breaking of 213 trendline area would be an area to add position.
Stops will be very tight on the 1st entry. Probably below pivots.
Alternatively, if CPI and PPI comes in weaker, we could see a break of 213 intraday and I would go with the break and stops sitting below 205.
I would be more inclined to take position only after CPI data release and if PPI comes in super weak, might take a small position.
I have laid out a lot of scenarios here. See which one fits your style and I will be updating the idea once I have skin in the game.
Goodluck!
Comment:
Entered again on break of channel.
Moved stop to below 20 EMA. Looking to add more tonight.
Moved stop to below 20 EMA. Looking to add more tonight.
Stops below yesterday low at 207.