$CRCL IPO Analysis

Overview of CRCL
CRCL is a recent initial public offering (IPO) within the digital currency and blockchain payment industry. The company presents itself as the “World’s Largest Regulated” stablecoin provider in the global financial sector.
Trade Entry and Rationale
On September 11th, I initiated a position in CRCL for $128. The entry was prompted by a notable pocket pivot and the stock’s ability to reclaim the 21-day exponential moving average (EMA), indicated in green on my charts. To manage risk, I set a stop loss just below the low of the entry day, which has not been triggered. Since entering the trade, the position has appreciated by just over 7%.
Current Position and Strategy
I am closely monitoring an identified area of resistance, where I have set an alert. If the stock can surpass this resistance level, I intend to add to my existing position.
Risks and Technical Considerations
Despite positive short-term movement, this remains a risky trade. While CRCL is trading above all its shorter-term moving averages, it remains below the 50-day moving average (DMA), shown in red. Additionally, the stock is trading below both the IPO Anchored Volume Weighted Average Price (AVWAP) and the All-Time-High AVWAP. These technical levels may represent points where selling pressure could emerge, which is important to consider if you were to initiate a position.
Conclusion
Given its current setup, CRCL may be a candidate for your watchlist.