Square Stock (SQ) Rises 10%, But Cycles Suggest This Rally Will Fizzle

Steve Miller

Square (NASDAQ: SQ) soared on Friday morning, trading as much as 10% higher, after the financial services company announced it had hired Amrita Ahuja as its CFO.

However, key cycle indicators suggest downside risk for Square (SQ) into the March of this year.

Founder Jack Dorsey announced that Amrita Ahuja will take the position of Chief Financial Officer. She is currently CFO of Activision’s (ATVI) Blizzard Entertainment unit. The previous CFO Sarah Friar had left Square to become the CEO of social network Nextdoor.

According to Dorsey, “Amrita brings the ability to consider and balance opportunities across our entire business, and she will help strengthen our discipline as we invest, build, and scale.”

Our analysis of the SQ market cycles suggest it is in the declining phase of its current minor cycle. Likewise, the stock is negatively configured, as it has broken the low at which it started its previous and current cycles.

As such, we are bearish, with a target of $45 by March.

Square (SQ) Stock Weekly Chart

square stock research decline lower sq investing forecast target march year 2019

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.