SQ climbs to highest close ever
Square Inc. Class A (SQ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SQ finished the month 29.43% higher at 104.94 after gaining $1.26 (1.22%) today on low volume, slightly underperforming the S&P 500 (1.54%). Today's close at 104.94 marks the highest recorded closing price ever. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SQ as at Jun 30, 2020):
Tuesday's trading range has been $2.41 (2.33%), that's far below the last trading month's daily average range of $4.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SQ.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 29th, SQ gained 2.02% on the following trading day.
Prices are trading close to the key technical resistance level at 106.36 (R1). After having been unable to move above 105.28 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 105.30.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 107.84 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 101.22 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Square. Out of 45 times, SQ closed lower 62.22% of the time on the next trading day after the market condition occurred.