Block (SQ) Presents A Bearish Opportunity On Continued Weakness | The Mesh Report

Block (SQ) Presents A Bearish Opportunity On Continued Weakness

Christian Tharp, CMT September 11, 2023 Comments Off on Block (SQ) Presents A Bearish Opportunity On Continued Weakness

Block (SQ), formerly known as Square, has had quite a lackluster year with largely sideways trading or continued declines. Most recently, we have seen more declines, falling all the way down to a support level of around 55. On Friday, price finally broke that support level, giving traders signs of a move lower to what could end up being a new 52-week low.

For those looking for short opportunities, it would seem this chart favors the bears, however, those looking to go short here should not jump in with both feet. If the overall market can push a bit, it could take SQ with it to retest that 55 level.

In this scenario, the risk/reward would be a bit greater and probability of a retracement from there would be greater. The key to a trade like this is patience, waiting for the proper time to enter the trade rather than chase a move in one particular direction or another.

Also, postion yourself based on the level of confidence you have in the trade, while leaving yourself room to add should the trade experience some drawdown. An important piece of trading to remember, trade for tomorrow, not just today. This will help you preserve capital and stay in the game longer.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

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