Here’s your trade on Coinbase ($COIN) – March 28, 2023
I want to talk about Coinbase ( NASDAQ: COIN ) here today. The SCC, otherwise known as the jackbooted thugs of the government, has had it in for basically anything and everything crypto.
Their latest little foray into intimidation was against Coinbase ( NASDAQ: COIN ), where they came out with a Wells Notice, which effectively just told the company, we’re looking into you. We are not really sure if we like what we see, so you better watch out, you better not cry. We might be looking at you later and bringing charges, but we are not going to tell you why, the SCC is coming, whenever. Brace yourselves, it will only hurt for a minute.
That’s what they are doing with the Wells Notice, so the stock dumps, right? It takes a dump here but it bounces off the 50. The next day, it is up even higher, nobody seems to give a rip about the Wells Notice. Now, it’s back down. Well, guess what, people still don’t give a rip about the Wells Notice because it came back and retraced the bounce, but it stabilized; where? Right around the 50-day moving average, and that is where we are now.
So this is the way I am looking at this stock, first of all, if something more comes of that, if the SCC winds up suing Coinbase ( NASDAQ: COIN ), then you know the stock is going to take another dive, you’ve got to be aware of that. I have read some articles about it, and my crypto market mentor and sidekick Scott McGregor knows a lot more about the Coinbase ( NASDAQ: COIN ) debacle. He is probably the most knowledgeable guy in the crypto space that I know of.
And by the way, we will be starting a Crypto Market Mentor resource for those who are interested in crypto, in the not to distance future. But Scott feels like this is a pretty good support line here at $60.00 or so. And as long as the stock stays above the 200-day moving average, then it is all good. Now, I would give the stock a little more room than that because I see the trading range it is in, and this would be a heck of a dump.
But it would really, in my view, need to come down below this low, which is at 51.00, before I would say I think this whole thing was a fake-out. Do the math, that is almost 20 percent. So this is not, oh, just put a tight stop in here and it’s all good. No, I would never put a 20 percent stop on anything. I am just talking about actually analyzing the chart, not setting up your trade.
So if you are interested in Coinbase ( NASDAQ: COIN ) I think this is a good time to buy it. You just want to make sure that you do have, according to my compadre Scott, you want to have a stop, I would say, right about there.
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