Daily Traders Edge

Square shares need to clear this one level to kick-start next leg of rally, chart suggests

January 27
10:27 2020

Square shares are breaking out of the box this month.

The fintech stock has added 14% in January, tracking for its best month since June.

However, Craig Johnson, chief market technician at Piper Sandler, needs to see the stock clear one key technical level to fully get behind the rally.

“The chart does look very bullish and on a weekly chart, if you unpack that, this has been a symmetrical triangle in the making for the past year,” Johnson said Friday on CNBC’s “Trading Nation.” “If you measure that out on an objective it would suggest you can see it move up toward around $74 to $75. So, definitely a buyer here based upon the charts.”

In emailed comments, he added that a close above $74 would “validate a topside breakout.” It broke sharply below $75 in August after its June-ended quarterly report. It has not topped $74 since then.

Continue Reading at CNBC

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