Stock of the Day: Square

Hello traders, and welcome to today’s Stock of the Day. Let’s take a look at Square (Block Inc.), where the technical situation lives up to the company’s name — quite literally, as the price action has been forming a neat rectangular pattern since July. The movement is highly contained, with price oscillating between two key horizontal boundaries, creating a classic rectangle formation, which perfectly reflects the balance of power between buyers and sellers.

For months now, Square’s stock has been moving sideways, consolidating after a longer period of volatility. The upper line of the rectangle acts as a strong resistance barrier, while the lower line provides a reliable support zone. Recently, the price once again tested the upper boundary, but the attempt to break higher failed. The rejection from this resistance level has since pushed the stock toward the lower edge of the formation, suggesting that we’re nearing another potential decision point.

From a trading perspective, the breakout from this rectangle will define the next big move. A breakout above the upper line would confirm a buy signal, opening the way toward higher targets and potentially marking the start of a new bullish trend. Conversely, a breakout below the lower boundary would generate a sell signal, implying that sellers have taken control and further downside can be expected. Until the breakout occurs, traders may continue to play the range, but it’s clear that a decisive move is approaching — and when it comes, it’s likely to be strong.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-square