SQ stock price rose by 26% in November and formed a bullish reversal pattern. It took support near the $39.00 level and showed a surprising recovery from the lows.
Block stock price managed to climb above the 50-day EMA which triggered the positive sentiment. However, buyers are facing difficulty in giving the follow-up momentum indicating that sellers are still active.
In mid-September, SQ stock price broke down the $50.00 support which triggered a panic sell-off. Later, the price continued the fall and tested the 2020 lows.
On November 2, 2023, Block Inc. released its third-quarter earnings. It reported an EPS of $0.55 and revenue of $5.617 Billion. Due to this stock, the price reacted positively and bounced back from the 52-week low.
The recent upmove came after the release of earnings. So, it’s difficult to say whether genuine buyers have participated in the rally or it’s just a short squeeze.
The coming few sessions will clarify whether the upmove is real or a temporary pullback. Block stock price closed the previous session at $51.05 with an intraday rise of 3.09%.
Will SQ Stock Price Sustain Above the $50.00 Level?
SQ stock price is trading near to the supply zone but bulls look more aggressive as compared to bears. So the possibility of continuing the upward momentum remains high.
Till the Block stock price trades above the 50-day EMA, the bulls will remain active and restrict the downfall. Moreover, if a short-term sell-off hits the shares, then buyers in the demand zone will try to absorb it.
On the other hand, if the price slips below the EMA then it might be an indication of a bull trap. The analysis suggests the recent upmove looks genuine and the probability of holding the $50.00 level is high.
Will Block Stock Price Give the Follow-up Momentum?
Block stock price displayed the bullish engulfing candle in the weekly chart. It engulfs the losses of the past five weeks and buyers are trying to give the follow-up momentum.
The MACD curve slopes upward and goes above the zero line indicating bullishness. Furthermore, the histogram bars are deep green, and forming higher high bars also denotes strength in the up move.
The RSI at 65 is highly bullish but near the overbought territory, so a minor retracement in prices is also possible.
Conclusion
SQ stock price rose by 26% in November and showed a surprising recovery from the 52-week low. The earnings were good due to which the stock price reacted positively and reversed the trend in an upward direction.
Technical Levels
- Resistance levels: $56.00 and $59.81
- Support levels: $44.00 and $38.89
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/11/08/sq-stock-price-analysis-q3-earnings-reversed-the-trend-upwards/