Score 7.5 (out of 10): BLOCK INC sets up for +22.2% rally in 3 months

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What’s Going On Here?

Block, formerly Square, is an American financial services and digital payments company. Block has closed the deal with Afterpay buy-now-pay-later integration which was announced for $29bn in August 2021.

Why Now?

BLOCK INC has triggered a new high volatility signal (3 month). During similar occasions, BLOCK INC shares had a median return of +22.2%, over the following 3 months – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for BLOCK INC received a high score of 7.5 (out of 10). This insight was generated on 2022-February-4 with last price of 108.87.

What’s This Company About?

BLOCK INC is in the Commercial Serv-Finance business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. ‘Wall Street’ analysts think the stock price will be worth +112% (average). Ticker symbol: SQ US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 133.09 (+22.2%) has been reached. Based on BLOCK INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 106.37 (last price at 108.87), which is equivalent to a -2.3% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

88.4% (May-2020), 60.7% (March-2020), 22.3% (December-2018), -4.2% (October-2018), 3.5% (January-2018), 13.5% (November-2017), 31.6% (July-2017), 22.2% (May- 2016), -30.3% (March-2016), 32.1% (January-2016).

Historical Chart:

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Summary:

NameBLOCK INC
ViewUp
Star (1 to 10)7.5
Target+22.2%
Time3 months
Hit Rate80%

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