SQ tests resistance

5 sept. 2020

After hitting the top of the channel, SQ is on its way down. The Relative strength index shows the price has a little bit to go before it hits the support line. I would watch patiently and wait for the RSI hit the bottom before taking an entry position or buying more. Accordingly, wait for the price level to hit the double support line. The double support line consists of last week’s high and the bottom of the long term channel. If/when the price tests the double support line, a bounce from the low would be a bullish signal while a drop beyond the support-level could be omega-bearish. Overall this is a strong stock so I prefer to remain bullish, and I recommend an entry above 141.50 if it bounces.

16 sept. 2020

Note

As of today SQ is traveling further up the channel after a bounce. If you took my advice and made an entry at 141.50, you would have made money on the day of the bounce, but the day after your gains would have been erased as the price fell all the way to 136. However, if you kept holding, you would be in the money by upwards of $10 per stock. This show the importance of setting well placed stop losses and watching the trendlines closely.