Block (SQ): Preparing for a Breakout Year in 2025

6 Jan

SQ is shaping up to either become one of the top picks for 2025 or face a potentially challenging year ahead.

From the monthly chart, SQ has mostly traded between $100–$35 since its IPO in 2015. While the $35 level seems unlikely to be revisited anytime soon, the current focus is on reclaiming the Value Area High (VAH) at $100. Success here could trigger strong percentage gains over the next few months.



We’re adopting a cautious approach, closely monitoring the chart. On the lower time frame, SQ is sitting in a key support/resistance zone (highlighted as a yellow box). Ideally, we want to see a break above the Value Area Low (VAL) and the completion of a smaller 5-wave cycle, marking the end of wave (i). A bearish divergence on the RSI at this stage would add confluence. Following this, a pullback could provide the perfect entry point for a long position.

At this time, we haven’t placed a limit order. A break below $55 would be a critical red flag, suggesting potential bearish developments, though this scenario seems unlikely without unexpected negative news.