Hello traders and investors! Let’s see how SQ is doing today!
First, in the 1h chart, we see early signs of a bullish reversal going on. After earnings, it did a strong breakaway Gap, and it seems nothing can hold SQ anymore.
However, pullbacks are expected, and the 21 ema is our first support level, which is holding SQ nicely so far. What if we lose the 21 ema? Then the retracements are going to work as supports. The 38.2% ($ 113) is the most interesting to me, and I’ll explain why in a few moments.
Since SQ has too many support levels, it won’t be easy for the sellers, and we would need to see a clear bearish structure in order for it to hit the $ 80s again. So far, SQ seems fine.
In the daily chart, for the first time since November 2021 it is trading above the 21 ema, a very good sign, but we don’t see a clear bullish structure here. It would be great to see higher highs/lows, therefore, a pullback might create the opportunity for SQ to build a true reversal structure in the daily chart.
To me, the moment for a correction is ideal: We just hit the previous resistance at $ 130 area (red line), and since we are above the 21 ema in the daily chart, this indicator is now a support level for us. Coincidence or not, the 21 ema is at $ 113, the same price level of the 38.2% retracement in the 1h chart. This tells me the $ 113 is an interesting key point to watch from here.
What reinforces a bullish thesis is the volume. Yesterday it dropped with decreasing volume, meaning that there is no true sell pressure on it. Remember the Dow Theory 5th tenet: The volume must confirm the trend.
To me, SQ is about to do a reversal, but we must be careful, and always wait for confirmation, as we lack bullish structure in the daily chart. I’ll keep you guys updated on this, so remember to follow me to not miss any of my future analyses!
First, in the 1h chart, we see early signs of a bullish reversal going on. After earnings, it did a strong breakaway Gap, and it seems nothing can hold SQ anymore.
However, pullbacks are expected, and the 21 ema is our first support level, which is holding SQ nicely so far. What if we lose the 21 ema? Then the retracements are going to work as supports. The 38.2% ($ 113) is the most interesting to me, and I’ll explain why in a few moments.
Since SQ has too many support levels, it won’t be easy for the sellers, and we would need to see a clear bearish structure in order for it to hit the $ 80s again. So far, SQ seems fine.
In the daily chart, for the first time since November 2021 it is trading above the 21 ema, a very good sign, but we don’t see a clear bullish structure here. It would be great to see higher highs/lows, therefore, a pullback might create the opportunity for SQ to build a true reversal structure in the daily chart.
To me, the moment for a correction is ideal: We just hit the previous resistance at $ 130 area (red line), and since we are above the 21 ema in the daily chart, this indicator is now a support level for us. Coincidence or not, the 21 ema is at $ 113, the same price level of the 38.2% retracement in the 1h chart. This tells me the $ 113 is an interesting key point to watch from here.
What reinforces a bullish thesis is the volume. Yesterday it dropped with decreasing volume, meaning that there is no true sell pressure on it. Remember the Dow Theory 5th tenet: The volume must confirm the trend.
To me, SQ is about to do a reversal, but we must be careful, and always wait for confirmation, as we lack bullish structure in the daily chart. I’ll keep you guys updated on this, so remember to follow me to not miss any of my future analyses!
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👉 Join the 5%: thefinancehydra.com/
💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.