SQ has found temporary support near its 50-week ema, even as it has dropped into a 'half-cycle' low. The reason I say half-cycle is that the full trough-to-trough cycle in SQ averages 16-18 weeks and given the overhead supply near 71.00 to 72.00, I'd say that the 'smart money' folks are going to short SQ on a bounce to that resistance area.
Then the second half of the bearish 16-18 bar cycle might commence, bringing SQ all the way down toward the demand area near 47.00, perhaps by February 2019. This stock had a massive run up on surprisingly light volume in the first 9 months of 2018, so expect the 'reset' to be painful for those who got in near 80.00, 90.00 or even 100.00 per share.
Ouch!
Longer-term, however, SQ looks to have a very bright future.
Would you agree that the rebound will only last for the weeks leading up to the holidays? I can see a slight upward trend happening at the start of the new year followed by the bulk of the pullback you're predicting. I'm curious to see what other insiders will be doing after seeing Dorsey.
@OldTrapper, Hi, thanks for your comment and question! The swing structure looks neutral to bearish right now, especially on the weekly chart. Only after I see a daily and/or weekly close back above 83.00 will I change my analysis. I expect SQ to stall near the next big supply zone (73.00 area) but let's see what happens. if the weekly low at 55.37 gets taken out on big volume, look out below, as the next lower demand zone is near 46.00 to 47.00.
wheatonbusinessjournal.com/quant-data-showing-valuation-of-57-00000-for-square-inc-nysesq/129480/