Here’s my take on $SQ – March 21, 2024
This is Scott with StockMarketMentor.com and your Chart of the Day. I want to take a look at Block ( NYSE: SQ ).
I think Block ( NYSE: SQ ) is a stealth crypto play, and while Bitcoin is in consolidation right now, I think this is definitely a chart that you can keep an eye on. There are some interesting patterns developing here on SQ ( NYSE: SQ ). Firstly, I see a bit of an inverse head and shoulders pattern right here.
We can see the left shoulder, the head, and then the right shoulder. And I see a long drawn-out neckline starting from here, going all the way across, right to there. It’s not perfect but you can see what I’m looking at. A clear neckline, a clear head and shoulders pattern, inverse head and shoulders pattern.
We have the breakout, we have the backtest, and now we know where clear resistance is right up here at around $88.00. So this definitely seems like a battle zone for the bulls because it’s tried to break out here a handful of times, right here, and right here. It couldn’t get above, couldn’t get above, and so that $88.00 level, I think is pretty important.
I’m going to set an alert on my software for just under $88.00. And I’m going to look for a strong move through that zone, coming on volume, and a close above for a potential trend change out of this, whatever this is. An inverse head and shoulders, a long drawn-out consolidation, pick your poison.
I think definitely that the $88.00 level is key for a potential trend change. They do have earnings coming up, it looks like the beginning of May, so there is still lots of time for that. But if this is a bit of a catch-up crypto play, I think a breakout around that level could be pretty important.
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