Square, Inc. (SQ) Technically Bullish with Significant Upside Potential After Upcoming Earnings Report
Square (SQ) stock could see sharp upside after this Wednesday’s earnings release (after the market close). The payment company was upgraded by Citi on Tuesday to a ‘buy’ with a $90 price target. The stock is currently ranging from around $76 to $79 as of Tuesday, so a $90 price target is significantly bullish. In support of the upgrade, Citi discussed the company’s high growth potential and its emergence as a force in the banking industry.
Though Wednesday’s earnings release is still expected to show negative earnings, the last earnings release in early August showed a loss that was substantially less than expected, which prompted a sharp surge for SQ stock.
From a technical perspective, the price of SQ stock has been in a relatively steady uptrend for years. In late October, the stock price approached its 200-day moving average to the downside, but quickly rebounded.
The Technicals Rating
The Technicals gives SQ a bullish rating of 7 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for SQ, as well as other relevant information that paints a moderately bullish picture of the stock:
- Price Position vs 200-Day SMA: +23.46% (above) – BULLISH
- Position vs 50-Day SMA: -6.72% (below) – BEARISH
- Position vs 20-Day SMA: +5.04% (above) – BULLISH
- 100-Day Trend Slope (Linear Regression): BULLISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- Stochastics (14,3,3) Level: Rising To Overbought – BEARISH
- RSI (14) Level: In the Middle – NEUTRAL
- Position in Bollinger Bands: Rising to Upper Band – BEARISH
- Sector (ETF: XLK) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: XLK) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BULLISH
- Short Interest Ratio: 8.72% – BEARISH
- Mean Implied Volatility (IV): 69.52% (52-week range of 34.99%-78.18%) – BEARISH
- Analysts’ Mean Target Price: $82.48 (above current price) – BULLISH
- Last Earnings Move: Sharp Move Up – BULLISH
Overall The Technicals Rating for SQ: TTTTTTTTTT (7 out of 10) – MODERATELY BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don