Fintech and payment stocks like
PYPL
and
MA
have broken out lately, but one of the highest-beta names is stuck at a resistance line:
SQ
.
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.
PYPL
and
MA
have broken out lately, but one of the highest-beta names is stuck at a resistance line:
SQ
. 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.
