Trading Strategies For Coinbase Stock Before And After Q1 Earnings

Coinbase Global, Inc COIN is set to print its fiscal first-quarter financial results after the market closes on Thursday, and the stock was edging almost 3% higher heading into the report.

When the cryptocurrency trading platform printed mixed fourth-quarter results on Feb. 21, the stock closed slighly lower the following day.

For the first quarter, analysts estimate Coinbase will print an earnings loss of $1.36 per share on revenues of $649.44 million. Read more here...

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

On Thursday, Needham analyst John Todaro reiterated a Buy rating on Coinbase and maintained a price target of $70. Mizuho analyst Dan Dolev maintained an Underperform rating Wednesday and lowered the price target from $30 to $27.

For the first quarter, crypto traders and investors will be watching to see how much of Coinbase's revenue was brought in through Bitcoin and Ethereum trading, which may suggest whether interest in the crypto sector is increasing or waning.

Bitcoin has surged about 73% this year, which suggests traders and investors could have been accumulating the crypto during the quarter.

From a technical analysis perspective, Coinbase’s stock looks neutral, having settled into a downtrend but attempting to break up through the upper descending trendline of a falling channel pattern.

The Coinbase Chart: Coinbase is trading in a consistent downtrend within a falling channel pattern, where the stock has been making a series of lower highs and lower lows. Coinbase’s most recent lower high was formed on Wednesday at $51.60 and the most recent lower low was printed at the $48.26 mark the day prior.

• On Thursday, Coinbase was attempting to break up from the channel. If that happens following the earnings print, Coinbase could reverse course into a longer-term uptrend.
• If Coinbase suffers a bearish reaction to the print, the downtrend will continue and the upper descending trend line of the pattern could continue to force Coinbase lower.
• Coinbase has resistance above at $50.34 and $60.99 and support below at $40.15 and $34.51.

Photo courtesy of Coinbase.