Block Inc. (NYSE: SQ) stock witnessed a sharp rebound from the lows of $40 and healed over 80% in the past weeks. However, the massive buying momentum is finally taking a nap, and gain-sharing activity was witnessed in the last sessions. Meanwhile, the stock is revealing a retracement move amid the uptrend. Recently, the stock has retested the supply zone of $80 but failed to surpass it and faced rejection.
SQ stock is trading above the 100-day and 200-day EMA and is trying to overtake the 20-day EMA mark to regain strength. Moreover, the price action indicates neutrality, and the stock has made a tweezer bottom candlestick on the 100-day EMA, which breaks the selling pressure. Additionally, the trend is intact, and buyers may lift the stock again above $70 soon.
At the close of Friday’s session, SQ stock was at $65.85 with an intraday gain of 2.14%, showing a pullback from the 200-day EMA mark. Moreover, the stock hints accumulation and will surpass the 50 day EMA hurdle in the following sessions. Analysts are bullish and suggest a yearly target price of $78.93, which stock claims in the past sessions and takes a U-turn.
Block (NYSE: SQ) On Daily Charts Displays V Shaped Rebound
On the daily charts, Block Inc.’s price has retained neutrality and has recovered sharply from the demand zone, which led to sellers being trapped. The stock has been in a correction phase in the past months and faces a selloff. Afterward, the Q3 2023 earnings results (NYSE: SQ) stock witnessed a trend reversal and sharply rose toward the bullish trajectory. Per the Fib levels, the stock is sustained above the 50% zone and is trying to escape the 61.8% zone.
The relative strength index (RSI) sharply fell toward the oversold region and witnessed profit booking in the last sessions. Moreover, the MACD indicator shows a bearish crossover and formed red bars which directs the retracement move.
(NYSE: SQ) Stock On Weekly Charts Displays Falling Channel
On the weekly charts, Block Inc. (NYSE: SQ) stock persisted in dragging the gains inside the falling channel and is delivering lower low swings. Moreover, the stock faced a sharp rejection from the 100-day EMA, where an evening star candlestick was noted, which is a bearish sign.
Summary
Block Inc. (NYSE: SQ) stock delivers a rejection from the channel upper neckline of $80 and is facing profit booking in the last sessions. The trend is neutral, and buyers are attempting to surpass the 100-day EMA to initiate a reversal. However, the pullback was intense, and volatility was witnessed in the recent sessions.
Technical Levels
Support Levels: $62 and $60
Resistance Levels: $68 and $70
