SQ closes higher for the 3rd day in a row
Square Inc. Class A (SQ) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SQ finished the week 2.54% higher at 71.14 after surging $1.85 (2.67%) today on high volume, strongly outperforming the S&P 500 (-0.9%). Today's close at 71.14 marks the highest recorded closing price since August 1, 2019. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SQ as at Jan 24, 2020):
Friday's trading range has been $1.90 (2.69%), that's slightly above the last trading month's daily average range of $1.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SQ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on December 12, 2019, SQ actually lost -1.61% on the following trading day.
Prices are trading close to the key technical support level at 69.73 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Square. Out of 69 times, SQ closed higher 53.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.87% with an average market move of 1.98%.