Square Inc Stock Chart Sets Up Swing Trade 2-14-20

SQ Square Inc Stock Chart 2-14-20

SQ Square Inc Stock Chart 2-14-20

Good morning and welcome back to Smart Money Alerts for Friday, February 14, 2020.

Today's trade setup requires patience. 

This week I wrote about forcing a stock to show you proof. Certain situations allow you to enter with a buy-stop order on a breakout. Certain situations call for confirmation.

Today's trade calls for confirmation, or proof the breakout is real. "Real" means buyers show demand and create higher prices and then hold the bid. Meaning higher-highs and higher lows after the breakout.

Square Inc SQ traded into major resistance this week setting up a potential run to $100 over the next seven days. I am waiting for a close over $82.50 (on the daily chart) to trigger my entry.

A quick tip about setting profit-targets...

I'm often asked "How do I get the most out of my winning trades?" I think it's an interesting question/dilemma but the answer is quite simple.

Research what the stock normally does. In other words look up it's "ATR" or average true range. And then factor in the typical momentum move for stocks which is 4-6 days (a day or two more if strong bullish order flow).

So for SQ the ATR is $2.40. That means the stock typically trades $2.40 from high to low.

Using these two simple metrics you can forecast your profit targets.

Then you just need the patience to hold the winners! 🙂

If you have any questions send me an email: pete@stocktradingpro.com

Have a great day!

Pete

PS. The stock market is closed Monday for Washington's birthday.

FL PhD who made $325,317 this year shares his story

A PhD who lives on an island off the coast of Florida has stepped forward to reveal how he made over $300,000 thanks to a rare phenomenon happening in the stock market right now.

He’s urging Americans to act while this extraordinary event is still in motion: “Missing out on what’s about to happen is going to be a huge source of regret in the months ahead.”

Click here to see his urgent message.

Nvidia Earnings: What Happened

Nvidia delivers strong earnings and keeps margins high. Earnings per share were above analyst expectations, as was revenue.

Gross margin was higher than expected, showing that it can keep profitability up even amid headwinds as the coronavirus disrupts electronics production across the world. The stock price traded more than 5% higher in after-hours trading.

Read More / investopedia.com/nvidia-earnings

Under Armour shares tank as retailer faces ‘ongoing demand challenges,’ forecasting sales drop in 2020

— > Looking for momentum off the earnings report.

Under Armour is calling for sales to drop in 2020, as it struggles to rally shoppers behind its sweat-wicking shirts and training sneakers, faced with heightened competition from Nike and Lululemon.

The company also said Tuesday it could take a hit during the first quarter of fiscal 2020 of as much as $60 million in lost sales from the deadly coronavirus.

Its shares were recently tumbling more than 17%, after Under Armour’s fourth-quarter sales came up short of analysts’ estimates.

Read More / cnbc.com/under-armour-earnings

Pete Renzulli
 

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