SQ soars, gaining $10.10 (6.99%) within a single day on high volume
Square Inc. Class A (SQ) Technical Analysis Report for Sep 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SQ ended Tuesday at 154.50 surging $10.10 (6.99%) on high volume, significantly outperforming the S&P 500 (0.52%). This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on August 17th, SQ actually lost -0.94% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (SQ as at Sep 15, 2020):
Tuesday's trading range has been $12.37 (8.47%), that's far above the last trading month's daily average range of $8.08. Weekly volatility is also higher, being 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 White Candle.
Square managed to close back above the 20-day moving average at 151.68 for the first time since September 3rd.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 170.61, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Square. Out of 107 times, SQ closed higher 54.21% 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 63.55% with an average market move of 2.72%.