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SQUARE INC (SQ): 35.27% Profits Taken

Idea Profits Taken

PositionTickerDirectionCloseOpenCloseProfit
SQUARE INCSQBuy16/02/2021205277.335.27%

Idea Summary

PositionTickerTypeDirectionDatePriceTargetStop
SQUARE INCSQInvestingBuy01/12/2020205250150

Idea Background

SQUARE INC, rather like Paypal and Stripe, is quite simply the next generation of banking, the old bricks and mortar model of banking is done, if you are yet to come to term with that, take a look at Lloyds’ (LLOY) chart below to see how obvious this is.

The chart of SQUARE is one of the most spectacular we have ever seen. Technical Analysis books write comprehensively about trading ranges and how to calculate them, and trend is your friend. The range above was not drawn but calculated, this is the 200 period Linear Regression channel.

You would be hard pressed to show a better example of a positive trend, and it was not even hand drawn, but a simple mathematic representation of the trend in the price action of the past 200 periods.

So it is safe to say then, that SQUARE is in a positive trend. While the outlook for online and digital banking remains so strong the expectation is that this broad positive trend is set to continue. SQUARE is certainly one to look to hold for the long term,  and also could be one to trade looking for a positive run over the Christmas period. The uber cautious could wait for the price action to drift to the lower end of the trend, just be aware though, that strong growth prospects like this one don’t often give you such an easy entry level, and we would recommend buying here, on the understanding that on any future mild weakness more could be acquired, only on a break below this trend channel would this extremely bullish outlook be brought into question.

Company Background

SQUARE, INC. provides, together with its subsidiaries, payment and point-of-sale solutions in the United States and internationally. The company’s commerce ecosystem includes point-of-sale software and hardware that offers sellers to payment and point-of-sale solutions.

It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a portable payments device that replaces keypad terminals, which accepts various payment types, such as tap, dip, and swipe, as well as prints receipts; and managed payments solutions.

The company also offers various software products, including Square Point of Sale; Square Virtual Terminal; Square Appointments; Square for Retail; Square for Restaurants; Square Invoices, Square Online Store; Square Loyalty, Marketing, and Gift Cards; and Square Dashboard. In addition, it offers developer platform, which includes application programming interfaces and software development kits.

Further, it provides managed payments, instant transfer, Square Card, Square Capital, and payroll. Additionally, it provides Cash App, which enables to send, spend, and store money; and Weebly that offers customers website hosting and domain name registration solutions. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.

Analysts Summary

Monthly Graph: Lloyds (LLOY)

Technical Analysis Guide

Please review the Research2 Technical Analysis Guide for more in depth explanations of most of the techniques used in our coverage.

Remember the Rules

Please also remember to regularly review the Research2 Trading Rules. Even when following the rules trading in the markets is difficult, attempting to trade the markets outside of the rules, just makes it even tougher. Target Zones and Stop Areas are provided for general reference, all actual stop and target areas need to be fine tuned by the individual traders, in line with their own risk profile, and once the Trading Rules have been followed and individual position sizing calculated.

Our Analysts

Research2 has over 50 years combined experience in various dealing rooms. Alex Neale is our co-founder and Senior Analyst and has over 20 years experience within the dealing rooms of various investment banks.

Alex graduated with a first, and top of his year, at University with his Business Studies degree, and also came top of the year in the Financial Management course, and won awards for the best coursework in the Financial Management course and also for best performance in exams overall. 

He is also one of the most qualified Technical Analysts working in the market today. Having secured qualifications from the three major global Technical Analysis bodies. The Society of Technical Analysts (STA), The Chartered Market Technician award from the Market Technicians Association (MTA) and the Master of Technical Analysis (MFTA) from the International Federation of Technical Analysts (IFTA), where he gained the Brooks Memorial Award for the best peer reviewed paper of the year. Click here to read the award winning peer reviewed paper. Alex is also a Chartered member of the CISI (MSCI) and fully qualified to give derivatives investment advice. 

So in terms of dealing experience, qualifications, fundamental knowledge and technical expertise, Alex has it covered. 

Disclaimer

This note is issued by Research Squared Ltd (Research2).  This note is prepared and distributed for information purposes only,  as the specific needs and investment objectives of each individual reader have not been taken into consideration. This note may contain information obtained by Research2 from third parties; the source of information will usually be disclosed.  Research2 makes no representation and gives no warranty as to the accuracy or completeness of the contents of this note.  Any person placing reliance upon this note does so at their own risk. Research2, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims arising from any inaccuracies or omissions in this note or any reliance on this note. This note should not be considered to be a solicitation, nor the offer of advice, for the purposes of the sale or purchase of any security, investment or derivative. The information contained in this note is not intended to form the basis of any investment decision as the specific needs and investment objectives of each individual reader has not been taken into consideration and so this note should not be considered as a recommendation by Research2 or any other person in relation to any of the companies, stock, commodities, currencies or other markets referred to in this note. The information contained in this note has not been verified by Research2 and Research2 undertakes no obligation to provide recipients of this note with any additional information or any update to or correction of the information contained in this note. This communication is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Please note the value of investments and any income derived from them can go down as well as up and the value of an investor’s investment may be subject to sudden and substantial falls. Past performance is not an indicator of a future positive performance. If in any doubt, consult an independent adviser to ensure you understand the products and are fully aware of the risks involved. 

This document is being communicated by Research Squared Ltd, a limited company incorporated under the laws of England and Wales. Company Number 12924446; registered office address Penstraze Business Centre, Chacewater, Cornwall, TR4 8PN. In the United Kingdom it is only being provided to those persons to whom it may lawfully be issued under The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

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Fundamental Data provided by Yahoo Finance and FTSE Russell Data Solutions

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