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Square: Gap Fill and Golden Cross for Jack Dorsey?

NYSE:SQ   SQUARE INC
Fintech and payment stocks like PayPal and Mastercard have broken out lately, but one of the highest-beta names is stuck at a resistance line: Square .

SQ has chopped around for more than a year, consolidating after a huge run (up 1,000 percent between September 2016 and September 2018). Pauses like this are common on the monthly chart for big growth stocks like SQ .

Price action has gotten more constructive lately. SQ's recent low around $61 was above the September trough, creating an inverted head and shoulders pattern running back to early June.

Jack Dorsey's company has also reclaimed its 200-day simple moving average and is now holding its 8-day exponential moving average . That's starting to look like a bullish flag , with the potential to move higher and fill a bearish gap from August. A price near $80 could be in the works if it succeeds.

The 50-day SMA is also rising and could pass above the 200-day SMA next week -- a "golden cross."

Traders should watch the previous resistance area between $70 and $71 to see if the stock can break out. Earnings are estimated for late February.

Comments

@TradeStation thanks for pointing this out, I dont know how i missed the large inverse H&S, I believe there is a huge gap fill in progress and this thing could hit 100$ very soon. Appreciate the idea!
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