Is Square, Inc. (SQ) Investing Its Way Into A Muddle?

Square, Inc. (NYSE:SQ) gained 2.02% in yesterday’s session, going up from its prior closing price of $30.15 to $30.76, and has now recorded rally in 9 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely. The stock price went upward in 9 of the last 10 days and has generated 8.31% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 0.07 million more shares exchanged hands compared with prior day. In total, 7.50 M shares exchanged hands for about $230.61 million.

Inside SQ’s Recent Trend

Square, Inc. (SQ) has broken the wide and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $30.23, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $34.13 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

Square, Inc. Technical Signals

SQ has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $29.37 and $27.16. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Monday September 25, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.

Square, Inc. (NYSE:SQ) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $28.50 and $25.44. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.

It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Square Inc approaches the first support point just current price at $28.50. In case of a break, the next support we will see from accumulated volume is going to be at $25.44 and $25.22.

Square, Inc. (SQ) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.90 (3.00%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 2.58%.

The stock is extremely overbought on RSI14 (71). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

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