SQ Stock: An Accelerated Trend
(NYSE:SQ) stock and providing my opinion on this investment has been a sheer pleasure " width="300" height="200" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/06/Square-Stock-300x200-Small.jpg?resize=300%2C200 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/06/Square-Stock-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />
BUZ INVESOTORS Square Stock Following Square Inc (NYSE:SQ) stock and providing my opinion on this investment has been a sheer pleasure because SQ stock has the uncanny ability to paint the price chart in a most precise and incredible way. I have been following this company since last summer, where I first had the inclination to carry a bullish view on Square stock, based on the number of embedded price patterns that were being painted on the stock chart.
I outlined these developments in an August 20 publication titled “Square Inc: SQ Stock is Sending a Flashing Buy Signal.” Since that day, Square stock has appreciated to the tune of 99%, vindicating my bullish view. The recent run has gone on for many months, and I am beginning to wonder if the current trend is getting a tad bit overheated.
The following Square stock chart illustrates the precise price action that has defined this current bull market advance.
This SQ stock chart highlights an alternating wave structure known as constructive price action. This wave structure consists of impulse waves and consolidation waves.
The impulse waves are highlighted in green, and they serve to define a state of price progression where the stock price advances in a swift and orderly fashion.
The first three impulse waves carried this characteristic, but the most recent impulse wave doubled that projected price move. This doubling is indicative of a trend that is accelerating, which could be suggesting that the trend may be getting overheated. This could possibly suggest that a correction was set to ensue.
The following Square stock chart illustrates other key technical indications that have been supporting this bullish advance.
This SQ price chart illustrates that a bullish trend distinctly began in June 2016. This bullish trend is being supported by a bullish moving average convergence/divergence (MACD) indicator and an uptrend line.
MACD is a momentum indicator that distinguishes between bullish and bearish momentum using the crossing of a signal line. In July 2016, a bullish MACD indicator was generated, indicating that bullish momentum was driving the predominant direction that Square stock was trading in. In order for an advance to commence, bullish momentum is needed, and this indicator suggested that bullish tailwinds were swirling around Square stock, creating an environment where the stock was geared towards higher prices.