Brokerage firm Coinbase Global (COIN) is trading lower Wednesday, despite an earnings and revenue beat Tuesday evening. Let's check on the charts and indicators.
In this daily bar chart of COIN, below, I see a chart that is vulnerable to further declines. Prices rallied into early February, but quickly retreated. COIN is now back below the 200-day moving average line. The 50-day line has a positive slope but is not all that far below the market. The On-Balance-Volume (OBV) line bounced in January and has quickly retreated in February. The Moving Average Convergence Divergence (MACD) oscillator has turned lower, but is still above the zero line.
In this weekly Japanese candlestick chart of COIN, below, I can see upper shadows above and near $75 telling me that traders are rejecting the highs. Trading volume increased in January and the weekly OBV line improved, but the MACD oscillator remains below the zero-line.
In this daily Point and Figure chart of COIN, below, I can see a downside price target in the $35 area.
In this weekly Point and Figure chart of COIN, below, I used close only prices. Here the chart shows us a price target in the $154 area. A trade at $57 could weaken the chart.
Bottom line strategy: Markets are forward looking, but a stock that does not advance on what appears to be bullish news is likely to be in trouble. Avoid the long side of COIN.
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