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  • Writer's pictureTLivingstonBlog

SQ Builds A Big Base

Square has been on my watchlist for quite some time now. I bought it this summer only to be knocked out as it corrected towards its' 200-day moving average. Being stopped out is part of trading, and I've learned to accept it just a baseball player understands he will make an out the majority of his at bats. However, I always make a note to keep a stock I previously owned on my watchlist in case it sets up once again. SQ looks like it is still building a base, however, its' current base appears to be a little more complex and longer than previously interpreted. While the recent shakeout was frustrating to experience, these types of moves often flush out weak hands, allowing a stock to set up for a strong move higher.

Fundamentally, Square is still delivering some really phenomenal numbers. Very few stocks with a $119 billion market cap deliver triple-digit earnings and sales, which SQ has done its' last two quarters. Square has become an essential service for many small businesses as more and more customers prefer to use credit cards over cash. In addition, SQ can also be considered a "bitcoin play" as Jack Dorsey plans on having Square launch a bitcoin DeFi platform.

I'll be monitoring Square closely over the coming weeks for a possible entry point.

Risk right. Sit tight.


Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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