In December 2018, as the general equities market was plunging, Square $SQ also fell sharply. However, we spotted a reversal candlestick combination right around a couple of other support factors (a previous resistance pivot and a rising trendline). Square Inc. (SQ) - Morning Star at Key SupportAt the time, I noted that even though we should anticipate a rally, we should limit our expectation to somewhere around $60. The rebound did materialize, and price actually pushed through $60, trading around $65.55 during the 1/14 session.SQ Daily Chart(click to enlarge)Resistance:- Around $70, there will be a support/resistance pivot. - Around $66, there is the 200-week simple moving average (SMA).- Also, the RSI has rebounded to almost 60 - a bearish market is likely going to keep the RSI below 60. Downside and Consolidation Scenario:- If price does indeed hold under $70, I would anticipate another dip towards the $50 support, and wouldn't be surprised if the correction extended below towards $45 before finding significant support again. - A break above $70 doesn't automatically signal a bullish continuation scenario. It would however mean that the bearish correction could be over, and a more sideways market might ensue.- In this scenario, I would still anticipate an eventual dip back towards $50, but I would have much more confidence that the support in this $50-$52 area will hold.