Square (SQ) appears to be approaching a bottom on the daily chart, with the potential to reverse its trend if the price can maintain above $64.9. A daily close below $63.47 would likely initiate a new downtrend.
Currently, the support levels are at $62.8 and $64.3, while the resistance levels are at $65 and $66.38. Whale accumulation is not visible on the daily chart, but it has increased to over 20% on the weekly chart. It’s worth noting that the monthly chart shows a tightening blue ribbon, which may indicate the end of the long-term bearish trend for SQ.
However, two conditions must be met for this to occur. The first is a sustainable monthly close above $62.64, and the second is an increase in whale accumulation, which currently stands at 27.38%.
$NIO (30 June 2024)
I have been frequently queried by followers who hold NIO stock about whether they should increase their position or cut their losses.
A comprehensive analysis of the daily, weekly, and monthly charts reveals a consistent bearish trend.
In Panel 1, a prominent downtrend is evident, indicated by a blue ribbon. Panel 2 displays a bearish trendline in green, further reinforcing the downward momentum. Panel 3 shows a significant decline in whale accumulation, marked by red bars, which is a critical indicator of waning investor confidence.
The daily chart concluded with a yellow candle, suggesting a potential continuation of the downward trend. For a bullish reversal to occur, a daily close above $4.30 is necessary. Conversely, a daily close below $4.14 would likely exacerbate the existing downtrend.
As a broader observation, the tightening of the red ribbon on the monthly chart, coupled with a gradual decrease in whale accumulation, typically signals a favorable opportunity to sell the stock. When whale accumulation drops below 50% on the monthly chart, it often serves as a warning sign that the stock is at risk of a long-term breakdown, even without the appearance of a yellow candle.
This pattern was observed in November 2021, when NIO was trading between $40 and $44, ultimately leading to a significant decline in its price.