New Price Targets for Coinbase, Robinhood Amid Speculative Frenzy
Robinhood and Coinbase are leading a speculative charge among retail investors.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
It’s deja vu all over again!
Just last month, we set new price targets for popular cryptocurrency exchange Coinbase COIN and retail brokerage powerhouse Robinhood HOOD. Now, we once again need to set new targets, as a roaring bull market has brought a speculative frenzy to two of the most popular conduits for retail speculation.
Coinbase
Over the past five trading sessions, Coinbase has gained about 22%. Over the past month, the stock has climbed by 39%.
When we recommended Coinbase on May 14 (arrow), the stock had just broken out of an inverted head-and-shoulders pattern (shaded yellow). Major resistance was located at $300, an area of congestion from January and February (black dotted line). We used that area to create our target price of $300.
It took just over a month for Coinbase to smash through that area. On Thursday morning, the stock reached a multi-year intraday high of $375.
There is only one resistance level remaining on the Coinbase chart, and it isn’t particularly daunting. On its first day of public trading, April 15, 2021, Coinbase reached a high of $429.
Although it’s a legitimate resistance level, it’s not an area of significant activity, so I believe Coinbase will have no problem reaching, or even breaking, that level.
The good news for Coinbase shareholders is that volume in the stock has picked up dramatically as the recent rally unfolded (shaded green). That’s an indication that institutions are buying shares of this retail crypto powerhouse.
Robinhood
When we recommended Robinhood last month (point A), the stock was about to break out of a rounded bottom pattern (shaded yellow). Over the past month, Robinhood has gained over 26%, enough to reach our target price of $85 during Wednesday’s session (point B).
Year to date, Robinhood has more than doubled, gaining 111%.
Robinhood has been publicly traded since July 2021, and in all that time the stock has never closed above $85. Therefore, the stock has no overhead resistance.
Once noticeable difference between Coinbase and Robinhood is volume. While Coinbase’s current rally is occurring on heavy turnover, Robinhood hasn’t seen a similar influx of volume (shaded green).
While we can’t use traditional technical methods to create a new price target for Robinhood, I believe the stock should have no trouble gaining an additional 15% from here. This would place the stock at $98, just below the round number of $100. Large round numbers can act as so-called psychological resistance, due to the tendency for traders, especially the retail variety, to place orders in their vicinity.
At the time of publication, Ponsi was long COIN and HOOD.
