Block stock price (NYSE: SQ) gained 20.97% in the previous month and succeeded to break the $70.00 hurdle. SQ stock formed a bullish continuation pattern and prices continued the recovery.
SQ stock price holds the 50-day EMA and also succeeds in climbing above the 200-day EMA. It shows that the short-term trend as well as the positional trend has reversed upward.
In the mid of May, SQ stock price took support near $55.00 and some responsive buyers came forward to push the prices higher. Later, the Block share price begins to recover by forming higher high swings.
During the recovery, it witnessed minor profit booking from the $70.00 hurdle. But due to the presence of strong buyers prices again bounce back and regains the confidence of investors.
Block stock price is successfully holding the breakout level which indicates that the $70.00 breakout is reliable. Therefore, $70.00 will now act as a strong support and any short-term selloff will be easily absorbed by the buyers.
Block stock price closed the previous session at $78.76 with an intraday decline of -2.02%. The market capitalization stands at $47.64 Billion.
Will Block stock continue the uptrend?
Block stock price (NYSE: SQ) has performed well in the past few months and generated a decent return for its investors. In the past few trading sessions, SQ stock is consolidating in a range and the next direction might be visible after earnings.
Block Inc. is expected to release its quarterly earnings on August 3, 2023. Market analysts estimated an EPS of 0.365 and revenue of $5.103 Billion. If the company succeeds to meet the estimates then the uptrend in the stock might continue.
If Block Inc. reports better-than-expected earnings then stock prices will continue the journey to reach $90.00.
SQ Stock is in the recovery mode
SQ stock is in recovery mode and turning bullish on multiple time frames. Till SQ shares sustained above $70.00 support the prices are expected to remain in bulls grip.
The MACD curve is trading above the zero line but sloping sideways indicates prices might consolidate for some more time. The RSI at 63 reversing down from the overbought territory indicates prices are cooling off before the next rally phase begins.
Conclusion
Block stock price (NYSE: SQ) formed a bullish continuation pattern and attempted to break out of the $80.00 hurdle. However, the probability of a breakout will increase after the company posts better-than-expected earnings.
Technical levels
- Resistance levels: $85.00 and $90.00
- Support levels: $70.00 and $60.00
