Swing Trader: Medium Volatility Stocks for Active Trading (TA&FA) Generates 14.41% for SQ
In the sphere of active trading, multiple strategies have been employed by traders worldwide. One such strategy that has witnessed noteworthy success is swing trading, especially for medium-volatility stocks. This trading method focuses on gaining profit from a stock's short-term price patterns, typically over a span of a few days to a couple of weeks.
Square Inc. (SQ), a leading financial services and digital payments company, stands as an ideal exemplar of this trading approach. The medium volatility stock has proved to be a lucrative playground for swing traders, generating a substantial 14.41% in returns.
Looking at the technical indicators, it appears that SQ has a promising prospect. Currently, it may be seen to rise above the lower band, showing signs of moving toward the middle band. This upward trend signifies the potential to regain its momentum, as predicted by the Bollinger Bands indicator. When a stock price moves towards the middle band from the lower band, it often symbolizes an upswing in the market trend.
From a fundamental analysis perspective, SQ's strong financials and strategic business decisions make it a lucrative option for traders. The company has demonstrated consistent growth over the years, and its commitment to innovation has put it at the forefront of the digital payments industry.
Swing traders may consider this an opportune moment to buy the stock or explore call options. Call options would allow traders to purchase the stock at a specified price within a certain timeframe. This strategy can be advantageous if the stock’s price appreciates, offering traders the potential to capitalize on SQ's market movement.
Given the medium volatility of SQ and the current market trend, it presents an active trading opportunity. By intelligently employing swing trading strategies, traders could leverage the upcoming momentum. The combination of technical and fundamental analysis shows that SQ's present state could pave the way for successful active trading.
SQ's current market positioning underscores the potential of swing trading in medium-volatility stocks. Its recent performance supports the perspective that swing trading can lead to significant gains in the stock market when paired with thorough technical and fundamental analysis. The journey of SQ's 14.41% returns exhibits the true power of astute trading strategies in the hands of seasoned traders.
SQ saw its Momentum Indicator move below the 0 level on September 07, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned negative. In of the 84 cases, the stock moved further down in the following days. The odds of a decline are at .
The Moving Average Convergence Divergence Histogram (MACD) for SQ turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for SQ moved below the 200-day moving average on August 23, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SQ entered a downward trend on September 20, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQ advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
SQ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.635) is normal, around the industry mean (21.161). P/E Ratio (294.118) is within average values for comparable stocks, (153.203). Projected Growth (PEG Ratio) (1.498) is also within normal values, averaging (2.676). Dividend Yield (0.000) settles around the average of (0.088) among similar stocks. P/S Ratio (1.451) is also within normal values, averaging (74.261).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SQ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SQ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of credit card reader solutions for mobile devices
A.I.dvisor indicates that over the last year, SQ has been closely correlated with COIN. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SQ jumps, then COIN could also see price increases.