COIN and HOOD Stock Outlook
Strengthening prices of cryptocurrencies, in particular Bitcoin, Ethereum, and XRP, have driven interest in COIN and HOOD stocks, before and after the Trump-Xi meeting in Washington. At approximately $86,000, $2,755, and $1.58, respectively, prices of the three major cryptocurrencies were rising. As risk appetite of investors changed, and if cryptocurrencies and stocks sustained the upward momentum, then stocks of COIN and HOOD might also rise.
Other macro-economic factors can also influence equities and crypto markets. Trade war and its probable impact on oil and other commodities prices can also influence equity and crypto markets.
The upcoming Trump-Xi meeting might also move risk assets, including equities and cryptocurrencies. Xi Jinping’s Washington visit (September 23-25) will likely focus on trade, tariff, and tech restriction. With sanctions on a couple of Chinese oil refineries, and if the US seeks to apply similar sanctions on other Chinese state banks, then Iran’s crude export might be allowed.
A resumption of Iran’s oil export might have positive impact on risk assets (stocks and cryptos). The opposite might happen with renewal of tariff and tech war on China.
HOOD Stock Breaks Above $123 resistance
HOOD is up to $124.33 today from its previous close of $123.59, a 0.84% gain. After dipping below the $120 region yesterday, the stock found support and moved above the $123.30 level. Increased volume usually indicates a change in the outlook of a security and could mean that the stock is poised to move even higher.
The $125 region is a resistance level that may create an obstacle for HOOD moving higher, and may reinforce a pause in the stock price. If there is continued buying pressure, HOOD has a potential upside to the $127 and $130 regions.
HOOD may see direct and indirect benefits of the increased market activity as a lower interest rate environment may allow investors to be more valuation aggressive and reward growth stocks.
On the downside, the $123.30 level may provide support and encourage a move to the $125 region.
COIN Stock Poised for $201 Breakout?
COIN is up slightly to $199.70 from its previous close of $199.52. Yesterday COIN dipped to $195.68 before recovering. Despite the increase in the price of Bitcoin, COIN continues to trade below the $201.05 level.
If the stock can push above $201.05, it may create a path higher to the $202.50 region. The $205 region may also be in play. Like many crypto-related stocks, COIN may see higher prices with an increase in the overall market and crypto-market.
A move below $197.50 may have COIN retesting the $195 region.
What is Potentially Next for COIN and HOOD?
In the short-term, several of these elements will influence each stock:
- The price of Bitcoin and other cryptocurrencies
- Investors’ appetite for cryptocurrencies, stocks, and options
- The status of Trump’s and Xi’s negotiations and changes to tariffs
- The cost of oil and international peace and stability
- The Federal Reserve’s policies
- Global peace and stability and the direction of national equity markets
COIN and HOOD Stock Forecasts
On top of everything else going on in the markets, the ongoing positive movement in cryptocurrencies and the scheduled Trump and Xi meetings mean that markets may continue to move higher in the near-term. COIN is trying to retake the $201 level and HOOD is trying to break above the $125 level.
Improving the world economy and lowering the price of oil is positive for risk appetite and the markets. The opposite is also true. Investors should focus on all of these factors and others and not use a single technical analysis factor to make a trading or investing decision.
