Block Inc., SQ stock price fell 23% in the previous month and formed a giant bearish candle. It showed a steep fall and formed a highly bearish pattern.
Block stock price broke down the crucial support of 55.00 which fueled the downside momentum. In September, Square’s stock price continuously declined by forming lower lows and eroded a big portion of its market capitalization.
The recent downfall in the SQ stock price looks reliable and seems like some big investors have taken an exit.
SQ stock price is down by 31.53% on a YTD basis. It has corrected a lot from the recent with recent swing high so a narrow-range consolidation or a short-term pullback rally is needed.
Block stock price is in a downtrend and trading below the 50-day and 200-day EMA. It looks oversold and short sellers seem to be highly active.
Meanwhile, the broader market indices also reversing down and trading with a bearish bias. It negatively impacts the prices of SQ shares as well as other tech sector stocks.
Block Inc.’s stock price closed the previous session at $44.26 with an intraday decline of -0.20%. The market capitalization stands at $27.00 Billion.
Will SQ Stock Price Show Comeback in October?
SQ stock price fell 15% in the 3rd week of September and hit a 52-week low at $42.77. The sellers look aggressive and continue their dominance on the higher levels.
Till the Block stock price is trading below $60.00 it is expected to remain in the bears’ grip. Any short-term pullback rally will face difficulty in the supply zone and the reliability of the up move will remain doubtful.
However, if buyers succeed in breaking the $60.00 hurdle then it may regain the confidence of the investors.
Block Stock Price has Fallen for Eight Consecutive Weeks
Block stock price has fallen for eight consecutive weeks. It indicates that investors are losing confidence in their business. Therefore, it is important for the company to turn profitable in the coming months.
The MACD curve is trading below the zero line and sloping downward indicates bearishness. The RSI curve at 21 denotes highly oversold territory. So a wild short covering rally may trigger anytime from the lower levels.
Conclusion
Block Inc.’s SQ stock price fell 23% in the previous month and eroded a big portion of its market capitalization. The technical analysis suggests the block stock price has corrected a lot so it is expected to consolidate in a narrow range.
Technical levels
- Resistance levels: $50.00 and $59.86
- Support levels: 40.51 and $35.00
