Coinbase Is Struggling to Build a Technical Base

The cryptocurrency exchange platform Coinbase Global (COIN) is scheduled to report their latest quarterly numbers on Wednesday.

Let's check out the charts ahead of the report.  

In the daily bar chart of COIN, below, we can see that the shares got "crushed" from November to May. Did I say crushed? Trading volume soared in May and has generally remained active. Prices have drifted sideways since May and have crossed the 50-day moving average. COIN is still below the declining 200-day moving average line.

The On-Balance-Volume (OBV) line declined into May/June and then improved into early August before weakening again. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line telling us that there is little trend strength. 

In the weekly Japanese candlestick chart of COIN, below, we see a mixed picture. Prices have drifted higher in recent months but still remain below the declining 40-week moving average line. The candles display a number of doji patterns and spinning tops but no clear bottom reversal patterns in my opinion.

The weekly OBV line is bearish with some improvement from the middle of September. The MACD oscillator has been improving but still remains well below the zero line. 

In the daily Point and Figure chart of COIN, below, we can see that the software has calculated a potential upside price target in the $110 area. 

In this weekly Point and Figure chart of COIN, below, we can see a price target in the $111 area.  

Bottom-line strategy: I have no special knowledge about what COIN will report to shareholders, but the charts do not suggest to me that a bottom has been firmly established. I would pass on any purchases of the stock.

Employees of TheStreet are prohibited from trading individual securities.