Square Has Pulled Back to SupportSquare is one of the hardest-charging growth stocks in recent years. Like many growth names, the fintech has paused since vaccine news triggered a shift toward value stocks in November. But now the risk / reward may be swinging back toward the bulls.
First consider the area around $200 where SQ is trying to bounce. It was also a low in late January, early March and late March.
Second, the support also matches the 200-day simple moving average (SMA). In fact, it is SQ’s first test of its 200-day SMA in over a year.
Third, stochastics have been oversold.
The fundamental story also seems to remain intact, with earnings and revenue beating estimates on May 7. Cash app also grew 139 percent (excluding Bitcoin).
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