Hello everyone,
SQUARE is definitely one of the current hype stocks. Accordingly, the share price has developed well in the past. But everything moves in waves and Square will be no exception. There are some warning signals in the chart that suggest a strong correction. And it is precisely this expectation that I would like to use to determine a nice long-term entry.
Chart-technical assessment
- The momentum of the trend has clearly cooled down in the weekly chart and is slightly negative according to the MACD indicator. This is also reflected in the fact that no new high was formed in recent weeks.
- On the downside, a clear support zone can be identified in the chart (grey box).
- Within the supposed top there are two very exciting candlestick reversal formations.
1. evening doji star: A formation of three candles. This formation is not very common, but when it occurs after a strong rally, we should pay close attention to it. The formation represents a strong trend reversal signal with a good hit rate. The top of the Evening Doji-Star formation is considered strong resistance and is located at 283.19 points.
2nd Shooting-Star: A formation from one candle: The Shooting-Star is another trend reversal signal. Moreover, it additionally occurs in the range of the Evening Doji-Star.
Conclusion
- The chart gives many warning signals that the party at Square is over for the time being. Nevertheless, no decision has been made here yet.
- Should Square sustainably overcome the upper side of the current formation at 283 points, a further long movement should be the consequence.
- Should Square fall through the lower support, as I expect, I will use the marked zone in the chart as a buying opportunity. This is where many supports and the price target of a sell-off come together.
As always, it's "do your own research" - I am not an investment advisor and this analysis reflects only my personal opinion and is not a call to individual action!
If you want to support my work I'm happy about a Like & Follow 🙏
Best regards & success!
Chartdigger
SQUARE is definitely one of the current hype stocks. Accordingly, the share price has developed well in the past. But everything moves in waves and Square will be no exception. There are some warning signals in the chart that suggest a strong correction. And it is precisely this expectation that I would like to use to determine a nice long-term entry.
Chart-technical assessment
- The momentum of the trend has clearly cooled down in the weekly chart and is slightly negative according to the MACD indicator. This is also reflected in the fact that no new high was formed in recent weeks.
- On the downside, a clear support zone can be identified in the chart (grey box).
- Within the supposed top there are two very exciting candlestick reversal formations.
1. evening doji star: A formation of three candles. This formation is not very common, but when it occurs after a strong rally, we should pay close attention to it. The formation represents a strong trend reversal signal with a good hit rate. The top of the Evening Doji-Star formation is considered strong resistance and is located at 283.19 points.
2nd Shooting-Star: A formation from one candle: The Shooting-Star is another trend reversal signal. Moreover, it additionally occurs in the range of the Evening Doji-Star.
Conclusion
- The chart gives many warning signals that the party at Square is over for the time being. Nevertheless, no decision has been made here yet.
- Should Square sustainably overcome the upper side of the current formation at 283 points, a further long movement should be the consequence.
- Should Square fall through the lower support, as I expect, I will use the marked zone in the chart as a buying opportunity. This is where many supports and the price target of a sell-off come together.
As always, it's "do your own research" - I am not an investment advisor and this analysis reflects only my personal opinion and is not a call to individual action!
If you want to support my work I'm happy about a Like & Follow 🙏
Best regards & success!
Chartdigger
