- Block Inc stock price has gained 30% on the previous month due to many prominent Wall Street analyst have given Buy ratings
- NYSE: SQ stock price attempting to breakout of the 200 day EMA
- Block Inc Q4 earnings estimate at $0.3 and revenue estimate at $4.6B
Block Inc (NYSE: SQ) stock price is trading with mild bullish cues and bulls are trying to defend the 50 day EMA but Q4 earnings are scheduled after the market hours which might decide the short term direction of the prices. In the previous session NYSE: SQ stock price closed at $72.94 with the intraday gains of 1.38% and market cap stood at $42.623B
On January 23, Barclays analyst Ramsey El-Assal raised his price target on Block Inc (NYSE: SQ) to 103.00 from $100.00 and maintained an overweight rating on the stock. In addition to that the stock has received 11 Buy ratings from different Wall Street analysts in the past 3 months shows that the analysts are confident for the future outlook of the company.
Will SQ stock price hold $70.00 after Q4 release?
Block Inc (NYSE: SQ) stock price seems to be lacking momentum on the higher levels and reversing downward after getting sharp rejection from the 200 day EMA which clearly shows that traders are booking their previous profits ahead of Q4 earnings.
In the beginning of January, Block stock has managed to push the price above the 50 day EMA which has triggered the positive sentiment and bulls succeeded to break out of the wide range consolidation between $50.00 to $70.00. Later, prices gave the follow up movement and hit a high at $89.00 but unfortunately overall market sentiment turned negative and bears gave strong rejection from the higher levels.
Recently, SQ stock prices have again tried to bounce back by taking support at 50 day EMA but it resulted as a bull trap and prices dragged down by forming lower low candles. However, the Q4 is scheduled after the market hours and if Block Inc succeeds to beat the street estimates then we may see a short covering rally which might reverse the ongoing trend. On the other hand, if it fails to beat the estimates then the probability of $70.00 breakdown will increase in the direction of bears. The technical indicators of the stock like MACD had generated a negative crossover indicating bearishness to continue for coming days whereas the RSI at 46 denotes that the prices are heading towards the oversold zones.
Summary
Block Inc (NYSE: SQ) stock price has shown a recovery of 30% in the previous month but unfortunately prices lacked the follow up momentum and reversed down by forming a bearish pattern. However, if the company beat the Q4 estimates then we might see a surprising rally in the upward direction.
Technical levels
Resistance levels : $84.00 and $90.00
Support levels : $70.00 and $58.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.