Square Inc. (NYSE:SQ) has been trading in a bear market but the charts have made major indications that now would be the perfect time to buy the stock.
Shares of the payment stock rallied more than 5 percent this morning, after the company’s’ CEO, Jack Dorsey tweeted about their current Bitcoin endeavor. Dorsey states that Bitcoin will be available to a lot more of its users that use the Square Cash app.
Despite the growth, the stock is still down around 20 percent from its November all-time high.
Rich Ross of Evercore ISI pointed out that everytime that the stock has fallen recently, it has eventually bounced back and rallied. In an interview Tuesday on CNBC’s “Power Lunch” he said, “The 50-day moving average has worked every time over the past 12 months to define support for the stock.”
As for entering this bear market, Ross does not believe there is anything to worry about given how much the stock has surged within the year. In the last 18 months, the stock is up over 500 percent and 20 percent drawbacks are to be expected with such growth.
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