Block (NYSE: SQ) (formerly Square, Inc.), is a U.S. public company that provides financial services and mobile payments. In this article, we will be taking a look at the technical structure following the Elliott Wave Theory to define the path within current daily cycle.
SQ started the initial rally from October 2023 low at $38.73 and it made 5 waves advance up to December 2023 at $80.29 where it ended wave ((1)). A correction in wave ((2)) took place toward $61.83 and then up from there the stock resumed the rally to the upside.
Block managed to break above December 2023 peak and it created an incomplete bullish sequence to the upside. The move higher is expected to unfold as a new impulsive 5 waves advance in wave ((3)) and it will be aiming for a target higher at equal legs area $103 – $129.
The impulsive move within wave ((3)) is usually the strongest and in the case of a nest it can extend beyond the 1.618 Fibonacci extension. Consequently, investors will keep buying the pullbacks in 3, 7 or 11 swings within current daily cycle and Block should create enough separation from January 2023 low $61.83.
Block SQ Daily Chart 3.26.2024
Source: https://elliottwave-forecast.com/video-blog/block-sq-upside-move/