SQ Stock and the Power of Four
(NYSE:SQ) stock since summer of last year, and I have been keeping on top of the bullish run that has developed since then." width="300" height="182" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/04/SQ-stock-300x182-Small.jpg?resize=300%2C182 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/04/SQ-stock-300x182-Small.jpg?resize=768%2C466 768w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/04/SQ-stock-300x182-Small.jpg?w=791 791w" sizes="(max-width: 300px) 100vw, 300px" />
BUZ INVETORS Square Stock Is Setting Up (NYSE:SQ) stock since summer of last year, and I have been keeping on top of the bullish run that has developed since then. This bullish run has seen Square stock more than double, and has been quite a spectacle to watch.
This advance has been quite orderly, and SQ stock has developed a distinct characteristic in its trading action. It’s a characteristic that can be exploited in order to create an applicable trading strategy.
ebullish on SQ stock on August 18, 2016, after a close examination of the Square price chart suggested that a bottom in the stock had been formed. I have been outlining key technical developments during this bull market that have been reinforcing the notion of higher prices. These key technical patterns have developed a defining characteristic that has become a recurring theme.
Square Stock Is Setting Up
The defining characteristic that continues to stand out is that, whenever a consolidation wave is completed, an impulse wave develops that is $4.00 in length. There have been three such impulse waves that have developed since the summer of last year, and all of them have been $4.00 in length.
This characteristic can be exploited to create an investment strategy because I can only assume that, after the consolidation wave that is currently in development finally completes, an impulse wave will develop that will yield to another run higher that is $4.00 in length. From current levels, it suggests that SQ stock would reach the mid-$20.00 level before the impulse wave has concluded.
The advance that began in the summer of last year was effectively confirmed by the moving average convergence/divergence (MACD) indicator, located in the lower panel of the above stock chart. MACD is a simple and effective trend-following momentum indicator that uses signal-line crossings to distinguish between bullish and bearish momentum.
In August 2016, a bullish cross was generated, which served to suggest that bullish momentum was propelling Square stock and, as a result, the path of least resistance was geared toward higher prices. This indicator has remained in bullish alignment while Square stock has continued to trade above the uptrend line.