Coupang Makes a Large Base Formation: Here's Where to Go Long
Coupang (CPNG) is the largest online retailer in South Korea. The company does a lot of things similar to Amazon (AMZN) with same-day or next-day delivery and their version of a Prime account.
Let's check out the charts and indicators of CPNG.
In the daily bar chart of CPNG, below, I can see a strong rally since early February. Prices are above but testing the rising 50-day moving average line. The slope of the 200-day moving average line is positive and intersects down around $18.
The On-Balance-Volume (OBV) line shows us a slow rising trend but has leveled off in May. The daily Moving Average Convergence Divergence (MACD) oscillator has been correcting lower since early May and it is nearly back to the zero line.
In this weekly Japanese candlestick chart of CPNG, below, I can see the board base pattern we noted in the headline. Prices have based out over the past three years and look poised for further gains. The shares trade above the rising 40-week moving average line.
The weekly OBV line has started to firm in the past three months. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of CPNG, below, I can see a recent upside breakout on this kind of chart. The software is suggesting a price target in the $30 area.
In this weekly Point and Figure chart of CPNG, below, I used a five-box reversal filter. Here the software suggests a price target in the $45 area.
Bottom-line strategy: Overall the charts and indicators of CPNG are bullish but the question is where to go long? The best location, in my opinion, is to wait for a dip to the $20 area risking to $18. My first price target is $30.
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