ZChartDoc

ZNGA Melting Up

Long
NASDAQ:ZNGA   ZYNGA INC
Through the pandemic it has been no secret that video game stocks like ATVI and EA are very strong performers since so many people are stuck at home. But you don't hear much about ZNGA , even though it fits the same mold and has been on a great run lately. On top of that, they made a great acquisition lately which will grow the user base and demonstrates management's hunger for growth. IMO the chart is looking very bullish and currently melting up towards $10.

Positions:
Have been holding the 1/15/21 $10c since the stock was $7.50 in late April. Currently up 100% and gaining.

Target: sell when ZNGA hits $11 region - expecting in Q3. Depending on price action I might hold 1 contract to actually exercise. I like the long term story too.

Reassess if turns decisively back to $8ish

Comments

I agree, Are you worried about the volume divergence? looking weaker and weaker....
Reply
ZChartDoc evelhalo
@evelhalo, Yes I'm a little concerned with volume and also in the bearish divergences forming with RSI and LMACD. But I think we are in a period similar to Mar-Jun 2019 where we just continue to melt upwards while the indicators cool off. I'm mainly focused on trading this move and will sell most of my contracts at that point.
Reply
evelhalo ZChartDoc
@ZChartDoc, I agree with the indicators the RSI dropping to oversold is good in my opinion as long as the support line isn't broken. Still on the fence about increasing position
Reply
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