Square Case Study: When Chasing a Gap Works

SQ exploded on Tuesday following an upgrade. Is there a way to identify when to chase a gap?

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First of all, SQ Jack-Knifed higher after undercutting last week's low on Monday, leaving it in the WEEKLY Plus One/Minus Two Buy position.

SQ has been a go-to glamour all year and the upgrade right in front of quarter-end smacks of an agenda,.

As the 10 min SQ chart above shows, when an Opening Range Breakout occurred, a trend day played out.

When SQ cleared the 9/17 outside down reversal high of 91.95, it got a second wind and exploded to a record high of 96.

Interestingly, Friday’s quarter-end is priced at 95.50 on the Square of 9.

Trade through 96 convincingly suggests yet higher prices.