Square, Inc. shares have fallen nearly 10% over the past week to their 50-day moving average at around $40.00. In late January, the company announced that its Cash App customers would be able to immediately buy and sell bitcoin, which sent shares to their reaction highs of around $47.00 before the recent move lower. The sharp decline in cryptocurrency valuations could be leading to less speculation in those areas.
Analysts have remained largely bullish on the stock. In late January, Nomura’s Dan Dolev increased his price target to $64.00, which represents a significant premium to the current market price. Among other things, the analyst cited increased penetration of higher-priced transaction types and higher-margin services like Square Capital and payroll as catalysts for the stock, adding to speculation that it could become an entrenched leader in payments. (See also: 4 Reasons Square’s Gains Can Multiply: Jefferies.)
Square shares fell sharply over the past week to key support levels that traders will be watching for signs of a breakdown or breakout. …read more
Read more here: Square Stock Reaches Technical Decision Point