Title: Uncovering Potential Investment Opportunities: A Closer Look at Squarespace Inc. (SQSP)
At Extreme Investor Network, we are always on the lookout for potential investment opportunities that can provide significant returns for our members. One company that has caught our attention recently is Squarespace Inc. (SQSP), which has been making headlines with its impressive performance and strong technical indicators.
Investors have been driving Squarespace’s stock price higher as the company raised its guidance for 2024. However, the real story lies in the technical analysis of the stock, which suggests the formation of a “big base breakout” pattern. This pattern signals the potential for substantial gains in the coming months.
Let’s dive deeper into the technical analysis of Squarespace’s stock. After its IPO in May 2021, the stock reached a peak of around $65 before entering a downtrend that bottomed out at $14.40 in May 2022. Fast forward to April 2023, and the stock had climbed back to around $33, marking a 38.2% Fibonacci retracement from the previous selloff. This level of $33 acted as a strong resistance, with subsequent peaks in late 2022 and early 2023 struggling to break above it.
In March of this year, SQSP finally broke above the $33.70 resistance level, which then turned into a support level in late April. This breakout, coupled with the concept of “polarity” in technical analysis, sets the stage for potential further upside.
The daily chart of Squarespace’s stock reveals how the $33-34 range was continually tested throughout 2023 and early 2024. This frequent testing of the resistance level is a crucial element in a “big base breakout” pattern. As the legendary technical analyst Alan Shaw said, “The broader the base, the higher in space.”
So, what are the potential upside objectives for Squarespace based on this pattern? By projecting the height of the pattern from the breakout level, we could see a minimum upside target of $41, with further resistance around $45.60 based on Fibonacci retracement levels.
Currently, Squarespace is trading above two upward-sloping moving averages, with the RSI indicator showing positive momentum in 2024. If the stock continues to make higher lows with improving relative strength, it could present a compelling opportunity for investors.
In conclusion, Squarespace’s stock is showing promising technical indicators that suggest the potential for significant gains in the near future. As always, it’s essential for investors to conduct thorough research and consult with financial advisors before making any investment decisions. Stay tuned to Extreme Investor Network for more expert analysis and insights on potential investment opportunities.
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