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To Short SQ

|Includes: Square, Inc. (SQ)
Summary

SQ can be shorted for the short-term.

Lower highs shows lack of support and great resistance.

Should break the bottom trend line next week.

Weekly down trend should begin, expecting price to break below $60 in the next couple of weeks.

The daily chart here hints that once the orange support line breaks, downtrend starts. And thus will lead to the the downtrend of the weekly chart (second chart) to begin. I am expecting it to break at least $70 next week and then break $60 in the near future (2-3 week).

Chart 1: The volume has decreased while the price moved up, meaning once a breakout occurs, there will be a high chance of a huge downfall. The lack of volume shows lack of buying power, and we all know what happens when the sellers comes in while there is a lack of buying power...

Chart 2: SQ should test new lows if not at least create a double bottom.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in SQ over the next 72 hours.