These 2 Retail Traders Favorites are Nearing Major Breakouts

Key Points

• Both COIN and HOOD are popular among institutional and retail investors, showing strong potential for further gains.
• Coinbase Global is up 33% YTD, breaking out of a bullish wedge and testing its 50-day SMA.
• Robinhood Markets is up 55% YTD, consolidating near its 52-week high and above key moving averages.

Shares of Coinbase Global NASDAQ: COIN and Robinhood Markets NASDAQ: HOOD are capturing significant attention. Both stocks display promising technical patterns indicative of potential breakouts. 

Let's delve into the current setup for these two retail favorites and explore why they might be poised for further upside, alongside a snapshot of key fundamentals.

Coinbase Global: Breaking Out of the Downtrend

Coinbase Global, a leading cryptocurrency exchange, has been on an impressive upward trajectory, with shares surging 33% year-to-date. The company reported stellar earnings on February 15, 2024, posting $1.04 earnings per share (EPS), significantly surpassing the consensus estimate of ($0.09). This impressive beat was supported by a 51.6% year-over-year increase in revenue, reaching $953.80 million, well above the forecasted $826.10 million.

Despite the positive earnings and recent bullish momentum in the stock, Coinbase currently holds a "hold" rating from analysts based on 20 ratings, with a consensus price target suggesting a slight downside. However, the technical analysis tells a different story. The stock recently broke out of a bullish wedge downtrend and is now testing its 50-day Simple Moving Average (SMA). Reclaiming and maintaining levels above this critical zone could signal a confirmed breakout, potentially leading to substantial gains.

The company's strong financial performance and the technical breakout make Coinbase a compelling candidate for continued growth in the near term. The current market dynamics and the increasing institutional interest in cryptocurrencies further bolster its prospects.

Robinhood Markets: Hovering Near 52-Week Highs

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