What's Next As Coupang Heads Toward Resistance?

What's Next As Coupang  Heads Toward Resistance?

Coupang Inc. (NYSE: CPNG) shares traded higher Tuesday after retail traders were able to push the stock higher. The stock has been recently hot with traders in Reddit’s WallStreetBets subreddit, and these are likely the retail traders who have pushed the stock. The stock was also trending throughout the day on social media sites such as StockTwits.

Coupang was up 10.22% at $42.16 at last check on Tuesday.

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Coupang Daily Chart Analysis

  • Shares have been trading in a sideways channel and tested resistance Tuesday, but looked as though it was unable to hold above the resistance level.
  • The stock is trading above the 50-day moving average (green), indicating sentiment in the stock is likely bullish.
  • The Relative Strength Index (RSI) has been heating up and now sits at 61, meaning the stock has more buyers than it does sellers.

Key Coupang Levels To Watch

  • The $42 level has held as a support level for a time before the stock fell below the level and turned into resistance. This level still holds as resistance as it has been unable to break above Tuesday.
  • The $37.50 level has held as support in the past and may continue to hold as support in the future.
  • The RSI sits at 61 and has been rising throughout the past week, meaning more buyers have been entering the stock as of late.

What’s Next For Coupang?

Bulls would like to see the stock be able to cross above the $42 level and hold this area as a level of support. If the stock can maintain above this level it could see further upward moves. Bulls want to see the stock start forming a higher low trendline.

Bearish traders would like to see the stock break below the $37.50 level. If the stock is able to break below this support level and consolidate below the level it may see a further downward push.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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