SQ Earnings Incoming
SQ has been in an extremely strong downtrend. It is down nearly 70% from its highs and it has ridden the 10 ema/20 sma down to current levels. It started to form some semblance of support, possibly a falling wedge pattern. With earnings coming up, a large move is expected. I look to the chart for support and resistance levels. On the downside, the continuation target looks to be about $80-85. Below there, im interested in the low 60s. If we get an earnings surprise, I think a strong short squeeze could ensue and take SQ to 130 which is the next obvious resistance level. It also happens to be where the 50ma is currently sitting.
Ideally, I would like to be able to short the 20ma with a decent hedge on an earnings pop. It seems unlikely that I will get my wish before earnings so I will set up trades for post earnings. Stay tuned.
Ideally, I would like to be able to short the 20ma with a decent hedge on an earnings pop. It seems unlikely that I will get my wish before earnings so I will set up trades for post earnings. Stay tuned.
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