Today's trading idea is focusing on NYSE:SQSP
The stock is gapping down to $17.5 (pre-market) after worse than expected 2022 revenue expectations.
The stock broke an all-time low of $22.43 that now became a resistance level.
The idea is to go Short at the open when it will try to move higher and fails. (What we call a gap and Go)
Earnings watch 3/7 pre-market:
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*3x lucky 7s of...
SQSP had formed a bearish inverse cup and handle pattern around 7 weeks after IPO.
This i c&h created a price target of $28 and it stuck very much to this as a great support level.
There is a resistance line at $40, no doubt it'll get there soon, whether or not it'll manage to breakout?
From the indicators, I'm seeing a great MACD reversal sign and a low-ish RSI.
Cup and handle has broken out a while ago with the breakout implying a target price of around 24.
The first price target at 35 has been reached and I believe now its in a contemplation phase before the next downwards stage.
Next few weeks should be telling.
Once 24 is hit, I expect a rebound to at least $40.
Squarespace's price action demonstrates the signs of a successful IPO in my opinion.
To confirm this idea, I would like it to bounce here and continue going up.
Would you guys agree or disagree?
As always, do your DD especially when it comes to IPOs as they are extremely volatile.
Squarespace, Inc. operates as a digital publishing and e-commerce software platform. The firm serves the bloggers, artists, restaurants, and musicians. The company was founded by Anthony Casalena in 2003 and is headquartered in New York, NY.