Hey – good morning everybody. Happy Wednesday. It’s time for our chart of the week, and this week we’re gonna be focused in on the technology name Block; the symbol is SQ. It used to be called Square, it’s now called Block. Let’s take a look at this chart. It had a really nice breakout in October and rallied up through a new high – new relative high – recently, and the strength looks real good.So let’s take a look at this chart here.What catches my eye here is this resistance level here. This is about $74. Now, we can also take a look at the bullish patterns that were developed over here. You can see here’s a nice cup and handle – er, inverse head and shoulders pattern. We’ve had cup and handle patterns that have also been evident, too. I will show you those in just a moment – crossing that neckline over there.But then also we’ve had a nice run up here, and again with the cup and handle pattern over here – basically up, come back down on lower volume. And then up again, come back down on lower volume, up again, and it’s rallying sharply the last six, seven days.So what has me excited about this?Certainly, the indicators are in great shape over here. We see higher highs and higher lows in the relative strength index up here on the top.Look at the volume, though. This is what’s pretty remarkable here. This is the month of November. Volume trends have been extremely bullish to the upside. And you can see a couple of days here we had some huge price moves in Square – in Block. And this is right after the earning came out. It came down to test the $71 level, actually a little bit below there, to this 200 day moving average at about $70. Bounced right off of there fierce. And then the following day, gapped up, left a gap open, and shot higher. Closed right near the highs of the session. That was a little over a week ago.So very impressive. It popped higher, rallied through. It stalled out at about $89, came back down for a couple of days last week. And even on Friday when the markets were down, this stock was up pretty strongly – this white candle right over here. Monday, it just exploded higher through $90.I think this stock has got some good strength into it. Good money flow over here, which means that big institutions are coming in and buying this stock.Where do I think the stock could go?Probably about $115 – 120 over the next three or four months. It would be a really nice gain of about 30%.Take a look at Block, which is the symbol SQ. I already own some calls on this thing, and I’m going to be rolling them out to some higher strikes and some longer time frames.Video Length: 00:02:58More By This Author:Market Psychology, FOMO, And You
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