Can COIN Rally The Troops?

Coinbase Global (COIN) is a pretty interesting setup here as it tested the rising trend-line in the short-term which is part of a broader channel that has been moving higher for the last two months.

However, with that bounce it now finds itself simultaneously testing the declining resistance in the short-term as well as the 200-day moving average. Break both, and I think there is a decent chance it goes back above 200, and retests the upper channel band. This assuming the market can eventually pull itself together here.

From a long-term perspective, there is a ton of support underneath for COIN at the 139-140 area. However, from a swing trading standpoint, there’s no way I want to be holding on to a stock that long (as a losing position, in this case) so that I could see what it does at that level.

With that being said, COIN is in the financial sector, and while it managed to bounce off of the 50% Fibonacci retracement from its March lows, I’m not so sure that it isn’t a dead cat bounce running out of steam here. If that is the case, you’re going to want to be careful with this stock as a break below the rising channel, will be enough for me to exit, if the trade doesn’t work.

Now the industry? Not so bad. It has struggled for much of this year, but the bounce off of the October lows, has it potentially breaking a lower-high on the chart, which could man that stocks like COIN may finally be starting to catch some traction.