Square (SQ) was trading 5% higher on Wednesday morning, after equities analyst Nomura described it as “like Amazon in its early days.” As well, a survey found strong interest amongst merchants in its proposed bitcoin-related services. This would imply a willingness to accept bitcoin as a increasingly popular payment option.
However, if Square’s fortunes rest on Bitcoin, there is significant risk. Our analysis of the market cycles on the SQ weekly chart suggest a pullback to $48, as the stock enters the declining phase of its current cycle. The cycles are designated by the semicircles at the bottom of the chart.
Square (SQ) Stock Chart with Weekly Bars
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