Coinbase Shares Rally Following Q2 Beat

Coinbase Beats Q2 ForecastsShares in crypto broker Coinbase are trading higher ahead of the open today on the back of better-than-forecast Q2 results yesterday. The company has come under a lot of pressure recently amidst the ongoing SEC action against the company, as well as market speculation regarding the health and future of the company. However, yesterday’s results provided a solid counter argument to bears. EPS was reported as -$0.42 against the expected -$0.75 the market was looking for. Revenues also came in above expectations at $707.911 million vs $627.311 million expected.Optimistic Over Q3 ResultsLooking ahead, the firm was optimistic over its projected performance for the year as a whole. While trading volumes have decreased significantly recently, so too have the company’s costs due to labour reorganisation and other cost cutting initiatives. In terms of figures, the company expects to bring in at least 300 million in revenue over Q3.The recent risk off tone to markets has weighed on Coinbase shares recently. The tech sector as a whole has been under pressure, adding to bearish sentiment. However, today’s US labour data holds the potential to drive a shift in sentiment if we see USD trading lower on the back of the results.Technical ViewsCoinbaseThe failure at the 110.37 level has seen the market trading back down towards the 85.92 level. While still within the broad bullish channel, the focus remains on further upside while that support level holds. If we break back below there, 60.11 is the next support to note.