Square
Square May Fall Hard - Sunday Stock TalkSQ (Square)
Support at 60 because of previous support.
Resistance at 70 because of previous resistance.
Price action is looking to be bearish at the moment but we are approaching a level of support.
Looking for either a bounce at the 60 support or a break through the 60 support for a push down lower.
Predicting that SQ break down under the 60 support and fall to the next support zone.
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Square came crashing down and hit the crucial support #SQ $SQSo much promising situation there was and even the magical third time spirit in the air did not provide upside break this time but lead instead to this massive drop downwards and hit straight in to support that should be there for holding the price. Much climbing ahead but probably good longing opportunity as well.
SQUARE SQ IS SKY HIGH - SHORT ITSquare SQ is so high and overvalued, it is ready for a serious short. SQ DCF valuation assuming growth rates of 50% sliding down to 7.5% over 10 year yields a value per share of $45. This assumes SQ will get a large portion of the world's payment system. However, there are many competitors to SQ - VISA, MasterCard and PayPal for example. I don't think SQ will be able to keep up the high growth rates when faced with these competitors. SQ's valuation could be a lot less than $45 per share. Technically, SQ has broken a major up trendline and is in a wedge. The RSI, ROC and MACD are all pointing to a downwards move. I suspect this stock will drop rapidly from here. Note it doesn't have any earnings yet, its P/E ratio can not be calculated because of negative earnings. If SQ can not break even soon and growth tapers, expect a dramatic fall in share price. The drop could start soon when it announces its next quarter earnings. If next quarter earnings are negative again, watch out, it's going to fall.
#Square stocks painting bull pennant, is this the time? $SQ #SQWrote here earlier about the third time magic of Square stocks and how the price got denied once again. This time seem to be different and maybe there actually is some magic in the air - if this pennant actually breaks upside from here we could finally be seeing a whole new priced Square stocks. Last time momentum above the trend line lasted around two weeks though so this is quite interesting times now. Soon we see.
Third time lucky? Not seem to be so. Not just yet. $SQ #SQUAREThis chart is so funny with all this hopping upwards and touching the 82 area. Again, it seem to be that the price got denied of going more up from there - for now - but slowly it will also run out of space to bounce as reckless it has from beginning of this year. Interesting to see the outcome when this major resistance turns finally into supportive trend line.
Is SQ finally bullish?Wondering what everyone thinks. Chart looks pretty good, finally broke resistance (green trend line)
Currently facing resistance at the 0.382 fib extension line (roughly $72.88) - Historically, seems like SQ is a big fan of this fib level (Take a look at how price reacts every time it touches 0.382 fib extension + 38.2 retracement -
Seems like a last kiss set up as well, where price may consolidate within the red rectangular box, hence why $78 should be strong resistance
If you have any comments or questions, feel free to ask! Thanks, will continue to update on SQ.
-Rocky
Square in Big Trouble, and Earnings May be the CatalystSquare has been extremely volatile over the past year, acting as an ATM for bulls and bears alike. From a purely fundamental perspective, their revenue is directly correlated with the health of American small businesses. Fewer swipes results in fewer merchant fees. The same could be said of their lending product, which requires a healthy revenue stream in order to service.
Their revenue has also been inflated due to valuations and stock holdings of acquired companies in their portfolio.
Therefore, in a macro environment where growth is slowing, if not reversing, it is likely that their value, too, will do the same.
From a technical perspective, the stock failed to breakout higher through its former supply zone, and will likely need to drop several levels in order to find fresh demand. Short sellers may be especially vicious.
Short-term target: 65
Long-term target: 50
$SQ: Buy the breakout! HUGE upside.Update on $SQ: In my previous analysis, I mapped out the price to continue upwards in the upwards channel but instead we went sideways. We are now in a bullish pennant, waiting for a break to the upside. The bullish trend is still intact as indicated by the weekly Ichimoku Cloud. And as we all know, bigger the time frames, the more reliable Ichimoku is.
In my opinion, buying now would be safest with setting your SL under the pennant before shares push higher in May (earnings report). This an analysis, not an investment advice.
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