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Swing Trade Idea (SQ) – April 13, 2022

Our bearish trade for Wednesday, April 13th is Block, Inc. (SQ). SQ is part of the Technology sector that has performed at -11.93% for the last quarter. 

SQ recently broke below the $150 support turned resistance level and rejected this level on the retest which provides a good risk/reward bearish entry. The M1 trend is Mildly Bearish and the 6M trend is Neutral. SQ has a Technical Score of 2 (2/10 – Very Weak).

As a close, if SQ were to trade above $150 for multiple days, this would invalidate our analysis and focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $13.60.