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.