The Last Time We Saw This Setup, This Stock Jumped 73%

[Trading With Larry Benedict]( The Last Time We Saw This Setup, This Stock Jumped 73% By Larry Benedict, editor, Trading With Larry Benedict Last week, a news story poured fuel onto one noteworthy stock’s rally… And it could lead to a substantial gain for traders who are paying attention to the cryptocurrency space. On May 24, the Securities and Exchange Commission (SEC) approved a rule change. The change makes it all but certain that the SEC will soon approve ETFs that track Ethereum. Ethereum is the second-largest cryptocurrency behind Bitcoin. The SEC approved the first Bitcoin ETFs nearly six months ago. And ever since, investors have been waiting with bated breath for the approval of an Ethereum ETF. The day after the SEC’s announcement last week, a slew of cryptocurrencies and stocks soared. One of those stocks is Coinbase (COIN). Coinbase is the largest online exchange for cryptocurrencies in the world. Following the SEC’s ruling, COIN shot up by 8.6%. And traders may have the chance to see significantly bigger gains over the next few months. Let’s take a look at what we’re seeing… Recommended Link [Private Citizen RUINS Biden’s Chances at Reelection??]( [image]( The world's most powerful private citizen is about to change the course of the 2024 U.S. Presidential Election? [This company co-founder's evidence says yes.]( This billionaire (not Donald Trump) won’t use his money to influence the election. And he won’t use any one of the groundbreaking technologies he’s pioneered… Instead, one man believes he could make five simple moves to get REVENGE on Joe Biden. And usher in a totally shocking outcome in November. Which is why he’s urging every American to make five specific money moves before July 18th. [Click here to see the details.]( -- A Promising Setup The chart below shows COIN’s price movement over the past 12 months. [(Click here to expand image)]( Two things should immediately catch your eye. The first is the Moving Average Convergence Divergence (MACD), located in the middle of the chart. The MACD identifies changes in momentum. As you can see, the blue MACD line has crossed above 0. This bullish signal suggests momentum is accelerating upward. The second thing is the Relative Strength Index (RSI) at the bottom of the chart. It has crossed above 50 and is rising higher. The RSI is another momentum indicator that measures the speed and strength of price movements. When the RSI crosses over 50 and keeps rising, that indicates an upward trend as well. Both indicators hint that COIN has more room to run from its current levels. To get an idea of how high COIN could go, we can review a similar setup that occurred three months ago. Here is COIN over the past six months: [(Click here to expand image)]( COIN experienced a steep slide through January of this year. Then it found a bottom at the start of February and began to turn upward. On the chart, “1” and “2” reveal the same two signals we highlighted above: the MACD line rising above 0 and the RSI rising above 50. Yet during this time, the 10-day moving average (MA, blue line) rose above the 50-day MA (red line) as well (“3”). Moving averages illustrate the average price of a stock over a specific period. When the shorter-term MA rises above the longer-term MA, it signals a bullish trend. So in mid-February, COIN’s chart showed three likely signs of a sharp run higher. The stock went on to rocket an additional 73% over the next four weeks. Today, we’ve only seen two of those signals light up. But COIN’s 10-day MA is growing closer to the 50-day MA. So COIN could be setting up for another solid run higher. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Strong Fundamentals Outside of its technical attractiveness, Coinbase has strong fundamentals backing it as well. On May 2, the company reported first-quarter earnings results that blew analyst forecasts out of the water. COIN’s revenue has nearly doubled over the past year. In fact, the pace of COIN’s revenue growth has accelerated over the past three quarters. A substantial increase in the value of cryptocurrency transactions happening on its platform is driving this growth. In the first three months of the year, customers moved $312 billion worth of crypto on Coinbase. That’s 116% more than a year ago. Ultimately, Coinbase is benefiting from increased interest in cryptocurrency… And its stock is looking set to rally further. That’s especially true if the SEC approves an Ethereum ETF in the coming months… One way or another, traders who keep a close eye on this stock will spot opportunities to profit as these elements all align. Regards, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](