Square Technical Analysis (NYSE:SQ)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Square stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the SQ stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Square. The technical analysis form of Square stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Square Moving Average
Moving averages show the SQ stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Square are mostly signals of long term trends and will help long term traders.
Square Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Square. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $72.9 is in the upper range of Square bollinger bands.
Square Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Square MACD indicator can be used to identify bullish and bearish trends for the stock.
Square Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of SQ stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.