Coupa Software Stock: COUP hovers near 52-week low ahead of Q1 earnings
- Coupa Software will deliver its fiscal Q1 2022 earnings report after the market closes on Monday, June 7, 2021.
- Shares of COUP are down 39% since mid-February.
- COUP stock currently sits on support at $230.
Coupa Software (NASDAQ: COUP) traded up gingerly in the premarket at the start of the week on Monday, June 7. Executives will deliver earnings results for Q1 of its 2022 fiscal year. Although the popular software-as-a-service (SaaS) company is beloved by Wall Street, the market has been more short-term minded since the start of the year. COUP shares are down 39% since mid-February along with a number of other high-growth upstarts and fell 0.4% at the open on Monday before rebounding 1.6% in the first hour of trading. The company is expected to report a loss of $0.19 a share after the close.
COUP share price: Support and resistance levels
Shares of the corporate-spending management firm are in the tricky spot of being almost universally praised by analysts but existing in a prolonged downturn that shows no signs of letting up. Of the six most recent major analyst actions, five graded Coupa as either “overweight” or “outperform”. While other hot stocks have gained their footing since the beginning of May, COUP dropped another 14.5%. Now, at least, it is sitting on what appears to be decent support. On the weekly chart, three of the last four weeks either opened or closed in the space between $230.23 and $231.04. This price level also shows support all the way back during the week of May 26, 2020, when it acted as resistance.
The 20 and 50-week Simple Moving Averages (SMAs) fly high above the current price at $282.48 and $294.87, not even in the same airspace. The 20-week crossed below the 50-week at approximately $294, give that price level for bulls to aim for. Before traders can aim that high, however, they will need to shoot for $270 – a resistance barrier for traders back in April.
COUP weekly chart
On the downside, the Relative Strength Index (RSI) shows a reading of 37 on the weekly chart. This likely means that many observers expect a further fall, as the stock is still not in overbought territory. Below the current price, there is a broad demand zone between $199.60 and $227.50. It is likely that COUP shares would once again be bought up here if they should extend down this far.