Previously, I outlined two possible trades on SQ. Short below 170 to the gap fill or buy the double bottom. If you took the short, you would have made it halfway to your target (the top of the gap fill). After the recent candles, Ive spotted a potential bullish divergence outlined on the chart. That combined with the hammer candle at support leads me to believe that a reversal could be in play. A fair target on the long side would be about 195. I would look for SQ to close above the 5ema. Stop out below the hammer candles low. Please be aware that reversals are hard to time. The trend is still down so this is a counter trend play.
Trade closed: stop reached:
If you did not wait for the close above the 5ema for confirmation, you would be stopped out of this trade.
