Coinbase Global, Inc COIN is preparing to release its fiscal fourth-quarter financial results after Thursday’s market close, with the stock showing a 3.5% upward trend prior to the event.

Following a third-quarter revenue beat on Nov. 2, the stock surged, with a steep uptrend leading to a Dec. 28 high of $187.39, when Coinbase closed 1.4% higher the day after the earnings release.

The company exceeded a Street consensus estimate, reporting $674 million in revenue for the quarter, surpassing the anticipated $653.19 million.

For the upcoming fourth quarter, analysts expect earnings of 2 cents per share on revenues totaling $823.85 million.

JPMorgan analyst Kenneth Worthington recently upgraded Coinbase from Underweight to a Neutral rating, with a $80 price target indicating a potential 51% downside for the stock.

Crypto traders and investors are particularly interested in the breakdown of revenue from Bitcoin and Ethereum trading during the fourth quarter, as both cryptocurrencies experienced substantial uptrends during the period, with Bitcoin surging almost 60% between Oct. 1 and Dec. 31.

Analyzing Coinbase’s stock from a technical perspective, it presents a mild bullish trend, potentially setting up a three-gap-up pattern but also requiring a pullback.

For those bullish on Coinbase, a diversified approach could involve taking a position in AXS 2X Innovation ETF TARK, while bearish traders could consider the AXS Short Innovation Daily ETF SARK.

The Coinbase stock chart indicates a gapped upward movement from a bull flag pattern, potentially forming a third gap higher. A retracement could be anticipated, considering the current relative strength index (RSI) of about 67%, nearing overbought levels.

• Consecutive upward gaps in the stock may suggest a third-gap-up pattern, with a potential retracement likely to follow, as signaled by the RSI nearing overbought territory.
• Bearish traders would hope for a flat or near low-of-day close on Thursday, possibly resulting in a bearish doji or shooting star candlestick. A bearish reaction to earnings and subsequent Friday decline could negate the prospect of a three-gap-up pattern, leading to at least another higher low within the current uptrend.
• Coinbase faces resistance at $177.45 and $187.39, with support levels at $162.20 and $140.53.

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