At this point in the year, the winners keep winning, Jim Cramer discussed in a recent Real Money column. That's because every year in late November, hedge funds start doubling down on their biggest winners, making a handful of stocks seemingly unstoppable. Cramer said these "up" stocks have the power of momentum behind them and they'll keep working until the beginning of the year.
Let's check out the charts of SQ because it is in an uptrend while PYPL remains stuck in a sideways pattern for now. We last looked at SQ on Sept. 8 and wrote that, " The charts and indicators on SQ are in alignment with Jim Cramer's view of SQ. Square could correct lower, but chart support in the $130-$120 could halt the correction."
In the daily bar chart of SQ, below, we can see that the shares did do some more testing in the early part of September but quickly restarted their uptrend. SQ is trading above its rising 50-day moving average line. The 200-day moving average line is also bullish and rising but intersects down around the $112 area.
The On-Balance-Volume (OBV) line has been rising the past 12 months and tells me that buyers of SQ have been more aggressive for a long time now. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late April and has turned upward to a fresh outright buy signal.