Is this an IHS pattern on Coinbase? $COIN – April 14, 2023
This is Scott with your Chart of the Day. One of the best trading stocks, for me personally, in 2023 has been Coinbase ( NASDAQ: COIN ).
Coinbase ( NASDAQ: COIN ) has offered multiple swing trading opportunities for you to buy near support, swing into momentum, sell into strength, and then let it fall back into support. Buy that momentum again, swing into strength, wash, rinse, and repeat. It has been a great trader this year, and I have traded it multiple times, including today.
Now, today’s close is lackluster, but I think the longer-term trend has some real potential. If I zoom out here you can see a potential inverse head and shoulders pattern. We have one shoulder, the head, and then another shoulder.
And so you can kind of see here, actually, it looks better on a weekly chart, in my opinion, because it is a little deeper. You can see it here, there is one, the head, the shoulder. Now, the neckline is a bit extended, a little more extended than I would like to see, but you kind of get the idea here.
What I want to see from Coinbase ( NASDAQ: COIN ) is a strong move, up through that level, coming on higher than average weekly volume, we are almost there this week. If it can do that, I think this stock has the potential to make a pretty big move.
If you measure from the bottom of the head to the top of the neckline, that’s about 168 percent in terms of a measured move, if we can get above this kind of area. Now, the real neckline could be up here at around 80.00, it doesn’t really matter.
What I want to see, essentially, is a break out of this pattern, and a confirmation with a move higher. If we get that, I think Coinbase ( NASDAQ: COIN ) could then turn into one of your best trades of the year if this pattern confirms.
So I definitely think you should be watching Coinbase ( NASDAQ: COIN ) at least as long as Bitcoin and some of these crypto stocks like the one Dan Fitzpatrick is in, Marathon Digital Holdings ( NASDAQ: MARA ), continues to perform. This is a massive move here in just a couple of days.
But as I said, I have personally been enjoying the runs here in Coinbase ( NASDAQ: COIN ) because it can offer 50 percent moves in 8 days. And for a swing trader, you’ve got to love it.
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