<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Square Inc (NYSE:SQ) is up 1% today, trading at $75.64. The payments stock has been quiet on the charts lately, shedding 1.5% in the last 30 days. However, amidst this mini pullback, a buying opportunity has emerged, if history is any guide. ” data-reactid=”11″>Square Inc (NYSE:SQ) is up 1% today, trading at $75.64. The payments stock has been quiet on the charts lately, shedding 1.5% in the last 30 days. However, amidst this mini pullback, a buying opportunity has emerged, if history is any guide.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Despite boasting a 34% lead in 2019, for the last month Square stock has traded in a tight range between the $74-$78 level. Just below that bottom rung is the shares’ 70-day moving average. Over the past three years when Square has come within one standard deviation of this trendline, the equity was up an average of 17.2% a month later and positive every time, per data from Schaeffer’s Senior Quantitative Analyst Rocky White. From the stock’s current perch, a similar burst would put the security above $88 for the first time since an early October bear gap.” data-reactid=”12″>Despite boasting a 34% lead in 2019, for the last month Square stock has traded in a tight range between the $74-$78 level. Just below that bottom rung is the shares’ 70-day moving average. Over the past three years when Square has come within one standard deviation of this trendline, the equity was up an average of 17.2% a month later and positive every time, per data from Schaeffer’s Senior Quantitative Analyst Rocky White. From the stock’s current perch, a similar burst would put the security above $88 for the first time since an early October bear gap.
![Daily Stock Chart SQ](https://s.yimg.com/g/images/spaceball.gif)
Another vault up the chart could start to sway some of the skeptics in the analyst community. Of the 30 brokerages covering SQ, 15 rate it a “hold” or “strong sell,” while its average 12-month price target of $83.33 is a slim 10% premium to its current perch.
Those wanting to bet on Square’s next leg higher should know that its Schaeffer’s Volatility Index (SVI) of 35% ranks 4 percentage points from a 12-month low. In other words, volatility expectations appear low, suggesting it’s an attractive time to buy short-term options premium.
Plus, the security’s Schaeffer’s Volatility Scorecard (SVS) stands at 90 out of a possible 100. This means SQ has tended to make outsized moves over the last year, compared to what the options market had priced in — a potential boon to premium buyers.
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