SQ rises to highest close since July 15, 2019
Square Inc. Class A (SQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SQ ended the week 3.8% higher at 81.86 after gaining $0.87 (1.07%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 81.86 marks the highest recorded closing price since July 15, 2019. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SQ as at Feb 14, 2020):
Friday's trading range has been $1.58 (1.94%), that's below the last trading month's daily average range of $2.43. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SQ. Prices continued to consolidate within a tight trading range between 78.90 and 82.59 where it has been caught now for the whole last trading week.
Unable to break through the key technical resistance level at 82.10 (R1), the market closed below it after spiking up to 82.59 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 82.54 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 82.59. The last time this happened on February 5th, SQ actually gained 0.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 83.20 is within reach and we might see further upside momentum should Square manage to break out beyond.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Square. Out of 226 times, SQ closed higher 60.18% 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 54.87% with an average market move of 1.94%.