$Block Inc (SQ2.AU)$ shares rose 10.84% on Tuesday, with trading volume expanding to A$36.47 million. Block has rose 14.49% over the past week, with a cumulative gain of 8.29% year-to-date.
Block's technical analysis chart:
Technical Analysis:
Support: A$90.38
Resistance: A$129.47Price range A$90.38 to A$129.47: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend. The stock repeatedly touched the level near A$90.38, where it found significant support and subsequently rebounded. There is a strong presence of buy orders around A$90.38, suggesting a robust foundation for the price. There is considerable upward pressure near the resistance level of A$129.47, with a lot of profit-taking positions, which suggests strong selling pressure. Going forward, it will be crucial to monitor whether the stock can effectively break through the resistance level at A$129.47.
Market News :
Block updated its quarterly report on November 8th, showing a gross profit of $2.25 billion, which is a 19% increase compared to the same period last year (pcp). Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $807 million, up from $477 million in the pcp. Operating income stood at $323 million, reversing from a loss of $10 million in the pcp. Adjusted operating income was $444 million, up from $90 million in the pcp. Block stated that the year-over-year improvement in operating income and adjusted operating income was driven by the growth in gross profit from the Cash App and Square businesses.
Investment firm Piper Sandler expressed optimism towards Block's stock, with analyst Arvind Ramnani starting coverage on the shares with an overweight rating, indicating a positive outlook. Ramnani set a price target of $83 for Block's shares in the US market. At the current exchange rates, this is equivalent to approximately A$126 per share.
Overall Analysis:
Fundamentally, focus on the company's performance and operational status. Technically, it is necessary to monitor whether the stock price continues to stay within the upward channel, whether the support at the bottom of the channel remains valid, and whether the resistance level can be effectively broken through.
In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.
