Today's analysis will be on SQ. Block, Inc. is a global financial technology (fintech) company based in San Francisco.
As you can see from the daily chart above, SQ is currently in a descending channel, and this channel has been confirmed again by yesterday's rejection at the upper trend line.
Looking at the hourly level, Head and Shoulders Pattern has formed, which further strengthens the suggestion that there will be a short-term bearish trend within the channel.
Our entry point for day trading will be below yesterday's low at $145.3. My first price target will be at $142 (Tuesday's low) where I will be trimming 70% of my put contracts. However, given the average true range (ATR) of SQ is approximately $6, it will take more than a day to reach our second price target of $132. For those who would like to secure profits and do not want to risk the extended hours, please close your position before the market close.
Our stop loss will be above the pre-market high.