President-elect Donald Trump is a crypto supporter, which could eliminate risks for COIN
CF Industries (CF)
Shares of fertilizer producer CF rose nearly 500% between their 2020 low to their 2022 peak. In the two years since, the equity has retraced approximately 61% of the move higher, finding support in 2023 and again in 2024 from a rising 200-week moving average (gold line above). During this time period, the shares consolidated by forming a saucer-type pattern, suggesting an accumulation has been taking place. To top it off, the 50-week moving average is meeting up with the 200-week trendline, making now an opportune time for a long-term buy.
Analyst ratings are lukewarm at best, with six "buy" or better, seven "hold," and two "sell" or worse recommendations on deck, leaving ample room for upgrades in the coming months that could lift the shares. Bears have been aggressively establishing short positions too, with short interest rising 43%in the most recent reporting period. If CF continues moving higher, bears may feel pressure to cover their positions, creating a tailwind for the stock.
Coinbase Global (COIN)
Precious metals are often viewed as a good investment during times of inflation. Cryptocurrencies such as Bitcoin (BTC) may be the new age defensive asset, as BTC recently took off when Federal Reserve Chair Jerome Powell said it's "like gold, it's just virtual and digital." In fact, crypto may very be the new age way to hedge against inflation.
President-elect Donald Trump said "you're welcome" on X after BTC crossed the $100,000 mark. Trump is a crypto supporter, and the biggest risk to the sector in recent years has been government interference. With that risk seemingly gone for the next four years, it could trigger tailwinds for COIN. Nearly 5%of Coinbase Global stock's total available float is also sold short, suggesting it is ripe for a short squeeze as we head into 2025.
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