InvestorsHub Logo
Followers 689
Posts 143817
Boards Moderated 35
Alias Born 03/10/2004

Re: None

Friday, 11/16/2018 12:25:50 PM

Friday, November 16, 2018 12:25:50 PM

Post# of 2988
Don't Sweat the Square Stock Pullback
By: Schaeffer's Investment Research | November 16, 2018

SQ has still more than doubled in 2018 despite recent struggles

SQ tends to rally after coming into contact with its 160-day trendline

Shares of Square Inc (NYSE:SQ) are 2% lower at $72.09 at last check, under pressure after the company's Chief Financial Officer (CFO) Sarah Friar announced she will be leaving today, a few weeks earlier than the expected. Square stock is now down more than 29% from its Oct. 1 record high of $101.14. But if history is any indicator, now may be the time to bet on the fintech stock's rebound.

According to Schaeffer's Senior Quantitative Analyst Rocky White, SQ is now within one standard deviation of the 160-day trendline, after a lengthy stretch above it. There have been two similar signals of this kind in the past three years, after which Square stock went on to average a one-month gain of 5.94% and was positive both times.



Looking at options data shows calls are still heavily preferred. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SQ sports a top-heavy 10-day call/put volume ratio of 2.14, showing call buying has nearly doubled put buying the past two weeks.

However, skepticism has been ramping up outside of the options pits. While 16 of 29 brokerages maintain a "hold" or "strong sell" suggestion, short interest jumped 8.2% in the two most recent reporting periods to 27.49 million shares -- representing a healthy 8.9% of SQ stock's available float. Should the shares once again bounce off this bullish trendline, a round of upgrades and/or short covering could strengthen tailwinds.

Read More »»»

DiscoverGold

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent SQ News