Swing Trading Plan
Holding Period
3-8 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
Coursera is forming a rounding bottom following strong Q1 2026 earnings—9% revenue growth with fourth consecutive quarter of double-digit Consumer segment gains and a record 7.6 million new registered learners. The stock currently sits at $5.68, well below its $13.79 52-week high (-58%), creating the foundation for this reversal pattern. Structure score of 13.0 and volume score of 12.0 indicate solid base formation, with RSI at 53.76 showing neither overbought nor depressed conditions. The $5.0 support and $10.19 resistance frame a well-defined setup with 64.72% historical win probability behind breakouts from this pattern type.
Stock Context
The major catalyst is Coursera's recent completion of its Udemy merger on May 11, 2026, creating a combined platform serving 290 million learners with 18,000 enterprise customers. Post-merger normalized revenue guidance is $1.49–$1.52 billion for full year 2026, with $115 million+ of annual run-rate net synergies targeted by end of 2027, including at least $80 million by end of 2026, supporting expected 2026 gross margin of 61.5% and Adjusted EBITDA margin of 13%. However, the company expects transactional headwinds and paid marketing optimization to create Consumer segment decline in 2026, creating near-term pressure despite strategic positioning. BMO Capital and RBC Capital both lowered price targets to $7.00 from $8.00, citing enterprise headwinds and mixed quarterly results. The pattern is forming as investors reassess the post-merger business model and digest synergy realization timeline.
What to Expect
A successful rounding bottom breakout would see the stock clear the $10.19 resistance level with sustained volume confirmation above the 20-day average of 8.17 million shares. The measured move target of $5.93 represents modest near-term consolidation, suggesting the pattern is in early stages of development. Invalidation occurs at the $5.0 support level—a break below signals the base has failed. Given the 64.72% historical win probability for this pattern type and the 72.0 overall score, the setup indicates above-average odds of a directional move, though the breakout score of 10.0 suggests early confirmation is required.
Risk Factors
Coursera expects a 2–3% decline in second-quarter revenue year-over-year with potential worsening in subsequent quarters, creating near-term earnings headwinds. The rounding bottom is still in formation—volume is currently 85% of the 20-day average, below the ideal 100%+ confirmation needed for pattern strength. Recent analyst downgrades to $7.00 price targets by BMO and RBC flag enterprise segment weakness as an ongoing concern. Beta of 0.8 provides some downside protection in broader corrections, but merger integration execution risk remains—synergy realization delays or lower-than-expected enterprise growth could invalidate the pattern's bullish assumption. RSI at 53.76 is neutral, and stock has only gained 6.97% in the past month, suggesting momentum is muted despite the recovery from 2025 lows.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is COUR a good swing trade?
COUR scored 72 out of 98 on our rounding bottom scan, with a 65% historical win probability over a 3-8 trading days hold. Good setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $5.68, with a conservative target of $5.93 and a stop loss at $5.38.
What would invalidate this rounding bottom setup?
A close below the stop loss at $5.38 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical rounding bottom setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.