Block, Inc.Long
Buying Opportunity. Targets: $246, $284
Updated
Greetings Investors,
I'm bullish on SQ , based on the following:
1. Price has retraced to a key-level of support around $210, which is also the 38% FIBO of the annual uptrend. I expect price to bounce upward from this level toward resistance at $246, which is the first target.
2. Price has retraced between the Monthly (blue line) and Quarterly (orange line) EMA, which is a classic buying zone setup.
3. Volume as decreased alongside price, which I interpret as bullish consolidation.
4. If price breaks through resistance with strong volume, second target is $284.
5. RSI (43) is decreasing, which I posit that SQ has explosive future potential (momentum).
Strategy:
1. Consider the 2250C (19 Feb). If SQ retests resistance within the next few weeks, the premium for this option will increase significantly. (BUY LOW, SELL HIGH)
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
I'm bullish on SQ , based on the following:
1. Price has retraced to a key-level of support around $210, which is also the 38% FIBO of the annual uptrend. I expect price to bounce upward from this level toward resistance at $246, which is the first target.
2. Price has retraced between the Monthly (blue line) and Quarterly (orange line) EMA, which is a classic buying zone setup.
3. Volume as decreased alongside price, which I interpret as bullish consolidation.
4. If price breaks through resistance with strong volume, second target is $284.
5. RSI (43) is decreasing, which I posit that SQ has explosive future potential (momentum).
Strategy:
1. Consider the 2250C (19 Feb). If SQ retests resistance within the next few weeks, the premium for this option will increase significantly. (BUY LOW, SELL HIGH)
Happy Trading!
Disclaimer. My ideas are for informational purposes only. My ideas do not constitute solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments. You should not construe any such information or other comments as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Please exercise your own due diligence.
Note
SQ broke a key-level of support yesterday with a gap down to $197, and closed at $202. I'm adding the additional levels of support to the chart. I still consider SQ bullish all the way to the 61% FIBO level of $187, as the chart below indicates. If price breaks below $185, it may signal an ABC correction pattern, which I interpret that SQ may enter a period of consolidation around $190. Given the fact that the market at-large turned down yesterday, with NASDAQ futures falling 450 points, I'm not concerned with the SQ break in support. Trade closed: target reached
Target reached!
Disclaimer
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