A very strong day for Coinbase stock price on Wednesday

StockInvest.us, 1 month ago

Coinbase

The Coinbase stock price gained 7.67% on the last trading day (Wednesday, 27th Dec 2023), rising from $172.05 to $185.24. During the last trading day the stock fluctuated 6.54% from a day low at $175.50 to a day high of $186.97. The price has risen in 8 of the last 10 days and is up by 32.67% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 3 million more shares were traded than the day before. In total, 15 million shares were bought and sold for approximately $2.86 billion.

On Nov 21, 2023, it was reported that Needham gave COIN a "Buy" grade with a "hold" action.

The stock has broken the wide and strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $172.06, a level that may pose a second chance to hit a runner. According to fan-theory $203.16 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

Coinbase

The Coinbase stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $168.18 and $129.10. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, December 11, 2023, and so far it has risen 34.21%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

On the downside, the stock finds support just below today's level from accumulated volume at $161.86 and $141.09.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Coinbase finds support just below today's level at $161.86. If this is broken, then the next support from accumulated volume will be at $141.09 and $140.20.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $11.47 between high and low, or 6.54%. For the last week, the stock has had daily average volatility of 5.70%.

The Coinbase stock is extremely overbought on RSI14 (79). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Several short-term signals are positive and the stock has broke the rising trend up, which indicates an even stronger rate of rising. We conclude that the current level may hold a buying opportunity as there is a fair chance for Coinbase stock to perform well in the short-term period.We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Check full Coinbase forecast and analysis here.