SQ: Trend Analysis and Key Points to watch!Hello traders and investors! Let’s see how SQ is doing today!
Despite the drop in the past two days, SQ just reversed its bear trend and now it is in a bull trend. We see higher highs/lows, it is trading above the 21 ema, and the volume is increasing, just after it hit the support at $ 87 (keep this price in mind). It is the first time we see SQ doing these movements since mid-2021.
It broke the previous resistance at $ 130, and this price level is supposed to work as a support for us next. In addition to the $ 130, we have the ascending 21 ema, which is another technical support. SQ could drop to these supports, and this wouldn’t invalidate the bullish bias seen in the daily chart.
In order to reverse and become bearish again, we must see a clear reversal structure, and so far, there’s none.
In my view, it is normal to see SQ struggling right now, because we just hit a key point in the weekly chart:
As usual, the 21 ema is working as a resistance here, and SQ is having a hard time breaking it. However, we have some good news.
Remember the $ 87? This price level is one of the most important for SQ, if not the most. It worked as a nice support level in February, because exactly 2 years ago (Feb 2020) this was the pre-Covid top. SQ lost 2 years of growth, along with the "tech enthusiasm" during the pandemic.
However, I like how the market reacted at this price, and the volume tells us everything, as it had one of the highest spikes ever seen.
To me, SQ looks interesting, and the bullish bias is intact, as we don’t see bearish structures. Either way, we must pay attention to the support/resistances mentioned in this analysis. I’ll keep you guys updated on this, so remember to follow me to keep in touch with my analyses!
