Website builder Squarespace Inc. ( SQSP) is up sharply in Thursday's trading, after the company's latest quarterly earnings miss and a revenue beat.
Let's check out the charts and indicators.
In this daily bar chart of SQSP, below, we can see that prices have tumbled lower since June.
While prices are still trading below the declining 50-day moving average line and the declining 200-day line, we can see some bullish divergences. Trading volume has increased since the middle of February. The On-Balance-Volume (OBV) line made a low in December and a higher low now for a bullish divergence - prices doing one thing while the indicator does something else. The 12-day price momentum indicator shows us another bullish divergence with higher lows from December even as prices make lower lows.
In this weekly Japanese candlestick chart of SQSP, below, the trend is still down but this week's candle has not been plotted. A bottom reversal could be in the making.
In this daily Point and Figure chart of SQSP, below, we can see that the software shows us a downside price target in the $8 area. A trade at $22.34 should turn the chart more positive.
Bottom line strategy: Aggressive traders willing to have a sell stop at $13 could probe the long side of SQSP. Without a developed base this is a short-term trade.
