Block, Inc.

Block - a potential break out of a bullish flag

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Following a significant downtrend, the stock XYZ has been consolidating since May 2022, trading within a range of $45–$50 and $90.

Within this broad consolidation, the price has repeatedly reacted to the $81–$82 level. Recently, after a sharp rally from $45, the stock is now consolidating right below this levela, forming a bullish flag pattern.

A breakout to the upside could propel the price toward the $98–$99 level, as suggested by the volume profile. With a dynamic breakout and a tight stop-loss set around $78, the risk-reward ratio could exceed 5:1.

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