SQ was absolutely a lead bull for the last 2 years since COVID hit. That’s over.
I’m drawing 2 Fib Retracements here:
1) LEFT Looking at the left Fib since the COVID low, we have now retraced back down to the 0.786 line (~$83/share). That’s bearish if I ever saw a sign. Furthermore, we in the last few weeks bounced up to $149.00, below the 0.5 Fib from the COVID low. Because we didn’t bounce off of the 0.618, there’s hope we can get bullish again, though bleak.
2) RIGHT Looking at the right Fib since the COVID high, we see we have bounced in the last few weeks to just shy of the 0.382 Fib. Again, not a good sign. If it were the 0.618 or the 0.5 Fib, there may be more room for a bullish look coming soon.
I expect SQ to bounce around between the LEFT 0.786 and 0.5 Fib ($84 and $153), and the RIGHT Fib 0.382 and 0 ($154 and $83) ~~~shockingly close values~~~ for a few weeks or months here.
Now, $83-$153 is a HUGE range for a ‘typical’ stock, so there will still be a lot of money to be made. I’m on the team of selling at the high end of this range and selling at the low end. When the channel breaks one way or the other, I’ll re-evaluate.
Happy Trading!
I’m drawing 2 Fib Retracements here:
1) LEFT Looking at the left Fib since the COVID low, we have now retraced back down to the 0.786 line (~$83/share). That’s bearish if I ever saw a sign. Furthermore, we in the last few weeks bounced up to $149.00, below the 0.5 Fib from the COVID low. Because we didn’t bounce off of the 0.618, there’s hope we can get bullish again, though bleak.
2) RIGHT Looking at the right Fib since the COVID high, we see we have bounced in the last few weeks to just shy of the 0.382 Fib. Again, not a good sign. If it were the 0.618 or the 0.5 Fib, there may be more room for a bullish look coming soon.
I expect SQ to bounce around between the LEFT 0.786 and 0.5 Fib ($84 and $153), and the RIGHT Fib 0.382 and 0 ($154 and $83) ~~~shockingly close values~~~ for a few weeks or months here.
Now, $83-$153 is a HUGE range for a ‘typical’ stock, so there will still be a lot of money to be made. I’m on the team of selling at the high end of this range and selling at the low end. When the channel breaks one way or the other, I’ll re-evaluate.
Happy Trading!