Buyable Gap Up - SQ 8-23-16

Published : August 23 2016 at 10:14 ET

Point-of-sale software provider SQ is having a buyable gap up on a ratings upgrade. While this type of buyable gap up is less powerful, we mentioned SQ in our webinars when it gapped higher on strong earnings, though it seemed potentially risky given how it closed near its low and had overhead resistance around 12. Indeed, it then undercut the low of its low by 3.6% which would probably have pushed out anyone using the 2-3% rule as a selling guide, thus no BGU report sent. We then mentioned it again as one to watch as it stabilized then moved higher in baby steps until today's gap higher. Sales have been very strong over several quarters. 

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