Coinbase Global (COIN) is hovering above a buy zone after volatile action. Coinbase stock, a bitcoin play, started its climb after Donald Trump’s election victory, as the president-elect is seen as cryptocurrency friendly.
But the IBD 50 stock’s breakout has been anything but textbook. This is where trading rules can help with proper entry and profit protection.
Two of the Four Pillars Of The IBD Methodology are especially critical when trading Coinbase stock: Timing Buys And Sells With Technical Analysis, and Risk Management.
↑
X
Donald Trump Wins 2024 Election: What It Means For Market Trends, Tesla Stock And Cryptocurrency Prices
Coinbase Global operates a cryptocurrency trading and transfers platform and has partners in more than 100 countries. The company reported $137 billion in assets under custody as of the end of the third quarter.
The stock ranks No. 1 out of 49 stocks in the Computer Software-Financial group, which holds the No. 6 spot out of the 197 IBD industry groups.
Some bitcoin related stocks have jumped as the price of cryptocurrency is flirting with $100,000.
Coinbase Stock Hovers Around Buy Zone
Coinbase stock rose more than 3% Friday and lifted out of a buy zone up to 297.65. Shares have climbed around 64% so far this month.
The stock started its ascent Nov. 6 in heavy volume, following Donald Trump’s election victory. Shares reached the 272.55 buy point of a late-stage double-bottom base two days later. The chart also flashed an alternate entry of 283.48, according to MarketSurge analysis.
The bitcoin stock exploded nearly 20% on Nov. 11, and topped the buy zones of both entries. It then reached the 20% profit zone of the 272.55 buy point.
Shares reversed sharply soon after and fell back below Coinbase’s buy zones. This was the time to follow the 7% sell rule as the stock plunged more than 10% and landed below the 283.48 buy point, triggering a round-trip sell signal.
As if that wasn’t enough, shares jumped 6.4% on Nov. 18, on news Donald Trump met with Coinbase Global Chief Executive Brian Armstrong.
Coinbase stock climbed 21% above the 272.55 entry within 15 days of its breakout, earning it a “power from pivot” flag. Again, the chart was warning it was time to take some profits. This would have locked in at least some gains before the stock plunged again with another round-trip sell signal in sight.
The stock has a tendency to whipsaw with wide daily spreads. But with pullbacks, there are opportunities. Additional shares could have been purchased when the stock pulled back into the buy zone.
Bitcoin Play Shows Results
Coinbase missed third-quarter earnings and sales estimates on Oct. 30. The company also announced a stock buyback program of up to $1 billion without an expiration.
Its quarterly profits and revenue have been erratic, along with the stock. FactSet full-year 2024 profit forecasts show $5.42 per share, up from 37 cents per share in 2023. It’s expected to then drop to $3.82 in 2025.
Coinbase stock holds a best-possible 99 IBD Composite Rating along with a 96 Relative Strength Rating. Its Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
YOU MAY ALSO LIKE:
GE Stock, Two Others In Buy Zones With Earnings Estimates Zooming | Stocks To Watch
Investors Revisit This China Hotel Stock After Hasty Earnings Sell-Off | Stocks To Watch
This Software Works On Mars; See You Up There, Elon | Stocks To Watch
Looking For Market Insights? Check Out Our Live Daily Segment | Stocks To Watch
Is ExxonMobil Stock A Buy After Trump Bump? | Stocks To Watch
