We asked ourselves last night, “Is Coinbase (COIN) set to rally off the 50% ~ 61.8% Fibonacci retracement level in the short-term?”
While its too early to tell, we did scale in after hours at 306.55 and 306.83. In addition, we plan to move stops +10 and add more shares if it does rally today, into the end of the week.
Coinbase Daily – Fibonacci and MarketSmith Earnings
We were prepared to buy 61.8% Fibonacci and 50% Fibonacci, if the stock dropped that low. We have a stop set pre-market at 316.83 (+10) from entry.
MarketSmith noted an earnings beat by nearly 300%, noted just below the 100% Fibonacci in red. Sales and earnings in the left panel were reviewed prior to the earnings release.
Watch for volume today. If relative volume (RVOL) is greater than 2.0 we could have an early confirmation.
Coinbase Hedge Wall
The hedge wall is moving higher as well, so its nice to see this action into earnings. We will watch for any changes post-EPS and let the trading room accordingly should it move lower in response to a change in dealer and market maker hedging.
Click to enlarge
Once again, its too early to tell, but we did scale in after hours at 306.55 and 306.83.
In addition, we moved stops +10 and will consider adding more shares if (COIN) does rally today. If it dips first we’ll take profits and reassess for the next trade.
We are bullish Bitcoin and anticipate resolution to the upside in the months to come.