Looking at the shares of mobile payment company Block, Inc. ( SQ) I got the impression that the worst was behind this name but renewed strength may still be a bit off in the future.
Let's check the charts.
In this daily bar chart of SQ, below, I can see a potential base being hammered out around the $60 level. Prices have moved sideways since June and SQ has crossed above and below the 50-day moving average line. In January prices finally moved above the 50-day and the 200-day moving average line. The trading volume shows us some improvement in the past two months.
The daily On-Balance-Volume (OBV) line made a low in early October. The Moving Average Convergence Divergence (MACD) oscillator has finally moved above the zero line but it looks like it has begun to narrow.
In this weekly Japanese candlestick chart of SQ, below, I see an improved technical picture. Prices are trading above the bottoming 40-week moving average line. The OBV line has turned upwards from a December low. The MACD oscillator has improved all year and is just below the zero line and just shy of an outright buy signal.
In this daily Point and Figure chart of SQ, below, I see a nearby price target of $86.
In this weekly Point and Figure chart of SQ, below, I see a price target of $137 but there is overhead chart resistance to overcome.
Bottom line strategy: The charts of SQ are looking better but are not yet ready to launch a sustained rally. Stay tuned.
