Let’s go back to a strategy we talked about at the Leverage Shares webinar yesterday, 2 December, with Eugenio Sartorelli, professional trader and member of the SIAT scientific committee. We share Eugenio’s strategy because he maintains an excellent risk-return profile given the levels reached by Coinbase. It can therefore be a good starting point for a trade.
Coinbase [COIN.O] is stable at $283.8 (0.3%), in pre-trading. Yesterday it closed at $284.7 (-3.3%). Coinbase is in what, for now, seems to be a correction phase after the strong uptrend developed starting from the end of September 2021. Currently, the prices are located on a very important support range: Fibonacci 50% of all the bullish movement started from the lows of May 2021 ($288) and static support at $280. This is a good level to attempt a Long with a stop at 61.8% Fibonacci at $269. In fact, the break under this level would give a bearish reversal signal (from $280 to $269/$270 area is about a 4% stop). Instead of a short to $307 (about 10%), the target would be to rise to $330. For a long time, if the stock were to confirm a recovery in strength, we can push ourselves towards the $370 area.
We recommend going LONG on the action by buying the Leverage Shares Coinbase 1X ETP (ISIN: XS2338070282), increasing in all downturns towards $280, with a short-term target towards $307 and a long-term target of $330. Alert/stop loss should be below $269 (daily closing).