SQ Square is looking like it is ready to correct itself in the near future. With accelerated C19 cases in multiple large population states, this will potentially hurt small businesses the most, which is Square's primary client base for their POS/processing business.
The one hour chart lays out are 2 target price gaps that will need to be filled at some point, these are what I am personally using as my price targets.
My position - SQ 7/17 100p
***THIS IS NOT TRADING ADVICE, these are just my own personal opinions based on my reading of the current situation. Do your own due diligence and be aware of the risks involved with trading***
107 in pre-market just sayin. Seems to be Wall Street's darling.
srazzano15
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@spdrasr3, may not be today, but I reckon its within the next week or so. We live in a post-TA world so I could be wrong, but the technicals support my idea.
Lemniscate
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I ll start to express mine
Lemniscate
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no way, you should not be allowed to express your opinion.....
I
srazzano15
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@Lemniscate, luckly, if I am wrong, you can have the peace of mind that I lost some money for my bad take. But, the technicals support my idea. If they had enterprise level clientele, I would feel less concerned, but that is not the case.
UnknownUnicorn6607632
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Not sure about the fundamentals. SQ makes money off on CashApp transactions and Bitcoin sales, which are up since people are buying more online and financial products due to Corona.
srazzano15
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@pvijayan, take a closer look at the RSI on daily as well. It has been in or near overbought territory for several weeks, along with gaps yet to be filled in the mid 90 region. From a pure chart pattern/TA perspective, the pieces all seem to fit for a correction to those target gaps.
Also, I'm definitely not a pro lol, just my reading based on what I can see.
UnknownUnicorn6607632
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@srazzano15, oh yeah it seems ripe for a correction on the technical side. I was just not completely on board with the fundamental analysis. SQ has diversified revenue streams and their model is subscription based, so even if sales are down, they can maintain margins because firms will need to pay a fee to maintain their payment terminals.
srazzano15
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@pvijayan, while you do make some valid points. And while they do have some diversification, they have no enterprise clientele, and transactions make up 65-70% of their total revenue (based on FY2019 numbers). I do think they have a strong case of settling near the $150 mark within the next year, but, before we get there, I think we take a trip down in the near future.