Bitcoin (BTC) surged another 8% on Monday, leaving the cryptocurrency above the $85,000 mark.
That rally has carried through to all the crypto related securities, including Coinbase (COIN).
Traders continue to move massive amounts of capital into Bitcoin as the market reacts to the election of President-elect Trump.
Positioning in the Bitcoin futures markets now show that large institutional traders are betting on prices exceeding $90,000 to $100,000. That news has drawn retail investors into the mix as volume on the Bitcoin exchange Traded Funds (ETFs) have been significant.
Shares of Coinbase are also on the move, rallying 20% on Monday. That buying is backed by the largest volume traded on the Crypto trading platform’s stock since July of 2023.
Shares of Bitcoin moved firmly above their 200-day moving average last week as investors started to accumulate Bitcoin after the election. Coinbase has been unable to break free of that long-term trend line - which is in a bullish trend - since early August.
The most recent rally in the stock has also turned the 50-day moving average bullish as of October 4th. That 50-day moving average is one of the best indicators as to whether the “trend” is a stocks friend.
Today's rally moves Coinbase into a technically overbought situation. That means that investors shouldn't be surprised to see the stock fall back down to $300.00 for support. This often happened as short-term traders take profits from a massive run, like what we've seen over the last week.
That support at $300.00 should be watched closely as it may represent a good buy the dip price for Coinbase.
Coinbase shares are trading in a long-term bull market trend and have a target price of $400.
Shares of WeRide (WRD) surged almost 40% today, as the stock crossed above $20.00 for the first time.
The autonomous ride sharing company went public on October 25th with an initial trading price of $15.50 per share.
The stock immediately surged 27% to reach prices just below $20, before retreating down to a low of $14.00 on the first day of trading in November.
Shares of We Ride have been trading in a range between 15 and $16.00 until today, when the stock surged to its high prices at $22.70. That surge in price was marked with an equivalent surge in trading volume, indicating that buying interest for the newly listed company is strong.
Chinese company robotaxi player represents the market’s only pure play global company in the business. Tesla recently rolled out their robotaxi product to investors to a muted response from investors as Elon Musk was light on details for the company’s business plan.
Last week’s White House win by President-elect Trump has investors speculating that the regulatory environment surrounding autonomous driving vehicle could relax. This has the possibility of opening the door for Telsa (TSLA) and other autonomous vehicle producers to grow more quickly.
WeRide’s chart is new to begin using any technical analysis to determine price support and resistance, though investors should always maintain an eye on round number prices given there sentiment qualities.
Shares of CrowdStrike (CRWD) rallied 3.75% to close the day above $340.
The company's recent surge in buying, since the presidential election, has resulted in the stock crossing above the key 200-day moving average.
CrowdStrike has been unable to break above this trendline for the last month as investors have been nervous about the ongoing legal battle with Delta Airlines.
In July, Delta suffered massive outages that were traced back to an update of CrowdStrike’s security systems. The outage cost Delta a reported $500 million. Delta is still preparing to recover those losses.
In early October, CrowdStrike’s stock shifted into a intermediate-term bullish trend as the stock’s 50-day moving average began trending higher. This trend suggests that the stock should be trading higher over the next 4-6 weeks.
The stock’s 50-day moving average is also close to crossing above CrowdStrike’s 200-day moving average. That would draw a “Golden Cross” pattern. Golden Crosses are patterns that forecast higher prices for a stock as momentum continues to become more bullish.
Investors will be looking for Details and updates on the company’s situation with Delta as well updates on their new large language model based security platforms.
Expect the recent technical strength to attract the “buy the rumor” crowd ahead of CrowdStrike’s November 24 earnings report.
CrowdStrike remains in a long-term bullish trend with a price target of $400.
