Block Inc. Stock Cracks Key Support Level

Block Inc. (NYSE:SQ) shares are trading lower as the stock attempts to make a rebound after falling below support.

Mizuho maintained a Buy on Block Tuesday and lowered the price target from $380 to $285.

Block was down 2.34% at $171.34 midday Tuesday.

Block Daily Chart Analysis

The stock was trading in a sideways channel and the price looks to have recently fallen below a $200 support level that has held many times in the past. Resistance was found near the $280 level in the past and may continue to hold in the future.
The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
The Relative Strength Index (RSI) has been steadily falling lower for the last couple months and now sits at 26 on the indicator. This shows the stock is sitting in the oversold range and is seeing much more selling pressure than buying pressure.

What’s Next For Block?

After falling below support, the stock looks to have made an attempt to reclaim the $200 level. It failed and the stock has pushed lower since. This shows that bears are in control of the stock, and bullish traders looking to start a position need to be cautious when they enter the market.

Bulls are looking to see the stock cross back above the $200 level and form higher lows up toward resistance. Bears have a grip on the stock and would like to see it continue to fall away from the support level.

Photo courtesy of Block.

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