Why Traders are Bullish $SQ

The S&P 500 is now over 12% from the low it made only a month ago. Fears of a bear market seem to be easing and many traders are now hunting for quality stocks that were dragged down with the rest of the market. One stock, in particular, that seems to be getting a lot of attention among chart watchers is Square ($SQ). The stock is currently trading around $72. It recently crossed above an upward sloping 200 day moving average, despite being down 28% from its peak in October.

Here’s a tweet from Christian Fromhertz, (@cfromhertz) founder of Tribeca Trade Group. Clearly, he’s bullish and notes that he has some skin in the game. The fact that it broke last weeks high demonstrates the aggressiveness of buyers.

Another trader, Anthony Maceroni is also bullish Square and explains why using the weekly chart below.

He emphasizes the close in all caps because many technicians regard the closing price as the only price that matters, an idea first proposed by Charles Dow. Anthony explains another bullish signal is the MACD (moving average convergence divergence) He points out that it seems to be reversing its trend and is starting to turning positive.

Lastly here’s a monthly chart of $SQ that gives us a long-term perspective. That massive green candle represents the month of January so far. It suggests we could be heading higher. The chart was shared by @AmyAtrade on Twitter.

It’s fascinating to see traders bullish on the same stock but for different technical reasons. Each uses their own set of tools but ultimately, they arrive at the same conclusion. Clearly, there are a lot of technical signals that support the bull case for $SQ. We’ll continue to watch $SQ and will be sure to check back if and when the stock prints new highs.