Square Stock Could Return To Record Highs Next Month

A short squeeze could help sustain a rally for SQ stock

Managing Editor
Apr 5, 2018 at 2:37 PM
facebook X logo linkedin

After adding 154% in 2017, Square Inc (NYSE:SQ) stock has continued this torrid pace in 2018, adding 38% year-to-date to trade at $47.83. Toward the end of March, however, the software stock lost steam, and is pacing for a third straight weekly losses. If history is any guide, though, it could be time to bet on the payment processor's return to form.

Specifically, the shares have pulled back within one standard deviation of their rising 80-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White, after the previous five times SQ stock pulled back to this moving average after spending a significant amount of time above it, it's averaged a 21-day gain of 20.15%, and was higher every time. Another move of this magnitude would have the shares flirting with record highs once again.

Square Stock Pullbacks 1 Year

A short squeeze could help the stock's ascent. Short interest accounts for nearly 15% of the stock's total available float, after a 13.1% increase in the last two reporting periods. Many analysts share this pessimistic outlook. Of the 29 brokerages covering SQ stock, 13 rate it a "hold" or "strong sell" and the security's average 12-month price target of $48.97 is right above the current perch, implying there's more room on the bullish bandwagon.

Finally, it's worth noting the security has been good to premium buyers in the past year. The stock's Schaeffer's Volatility Scorecard (SVS) comes in at a lofty 95 out of 100. That means SQ stock has exceeded options traders' volatility expectations during the past 12 months.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI