It doesn't take an expert trader to figure out Square's price action right now -- shares have been bounding their way up and to the right.
Put simply, the uptrending channel in Square gives us a confidence band that the price action is likely to stay within until the trend eventually changes. So far, every test of trendline support on the way up has provided Square bulls with a low-risk, high-reward buying opportunity for shares. In other words, it's a "buy the dips” stock.
Shares' latest dip at the end of April serves as confirmation that buyers are still in control of shares.
Put simply, the uptrending channel in Square gives us a confidence band that the price action is likely to stay within until the trend eventually changes. So far, every test of trendline support on the way up has provided Square bulls with a low-risk, high-reward buying opportunity for shares. In other words, it's a "buy the dips” stock.
Shares' latest dip at the end of April serves as confirmation that buyers are still in control of shares.