The HR department of crypto exchange Coinbase (COIN) has been busy with another round of staff cuts. The company is cutting 950 employees on the heels of a staff cut in June. Let's check out the charts to see if traders and investors are cutting COIN from their portfolios.
In this daily bar chart of COIN, below, I can see that prices have struggled the past year. COIN trades just below the declining 50-day moving average line and below the weak 200-day line. The trading volume has been more active since May, but it has not supported a sustained move higher. The daily On-Balance-Volume (OBV) line has been weak since August and tells me that sellers of COIN are more aggressive than buyers -- not a good sign. The Moving Average Convergence Divergence (MACD) oscillator is below the zero-line in sell territory.
In this weekly Japanese candlestick chart of COIN, below, I see a bearish picture. Prices show a huge decline with prices still below the declining 40-week moving average line. The weekly OBV line remains in a downward trend. The MACD oscillator is bearish. The candles are compressed because of scaling so hoping for spinning tops may be futile.
In this daily Point and Figure chart of COIN, below, I can see a price target of $62.
In this weekly Point and Figure chart of COIN, below, I see a potential downside price target in the $12 area.
Bottom line strategy: Creating a new exchange is a huge task. Not everyone is up for the task. I remember the efforts of David Krell to help launch the International Securities Exchange back in 2000. It's a lot of work. For COIN, the charts suggest further struggles ahead. Avoid the long side of COIN.
