When we last reviewed Square Inc. (SQ) on May 8 we wrote that, "SQ is pointed higher and traders could go long on a shallow dip. Risk a close below $63 for now. The $100 and then the $108 area are our price targets." Prices have nearly reached our $108 price target so an update is warranted.
In the daily bar chart of SQ, below, we can see the steady uptrend from the March low. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. We can see a bullish golden cross earlier this month as the 50-day line moved above the slower-to-react 200-day line.
The On-Balance-Volume (OBV) line has been rising the past 12 months but the rally has been stronger since March. This strong OBV line tells us that buyers of SQ have been very aggressive and confirms the price gains.
The Moving Average Convergence Divergence (MACD) oscillator has been bullish since late April and is now turning up to a fresh buy signal.
In the weekly bar chart of SQ, below, we can see how prices are breaking out to new highs from a large consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line has made a new all-time high. The MACD oscillator is bullish.
In this updated daily Point and Figure chart of SQ, below, we can see a new upside price target of $128.
In this weekly Point and Figure chart of SQ, below, the software is projecting a potential price target of $228.
Bottom line strategy: SQ has made a great advance but there looks like more gains ahead. Continue to hold existing longs and raise stop protection to a close below $90 for now. After $108 our next target becomes $128.
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