Classic ascending wedge is a big bearish sign. Note that on MACD and RSI the lower highs with each price high. I am expecting a drop to around the $6.00 mark before the year ends.
Comment:
Price is currently flirting with the lower trend line of the ascending wedge.
I expect there to be quite some support at the lower Bollinger Band limit of $6.25-$6.26. There are three scenarios from here:
1a. ZNGA finds support at the $6.25-$6.26 level and will bounce.
1b. ZNGA breaks through middle Bollinger Band and continues to the upper Bollinger Band.
NOTE: I will close my position if it breaks above the middle Bollinger Band.
2a. ZNGA finds support at the $6.25-$6.26 level and will bounce.
2b. ZNGA rises to middle Bollinger Band with big resistance and continues to head downwards after the attempt towards the $6.00 range.
3a. ZNGA blows past the support at the $6.25-$6.26 level, where I believe it will head towards the $6.00 range.
Be careful of a false bear flag. Tread lightly with this.
I expect there to be quite some support at the lower Bollinger Band limit of $6.25-$6.26. There are three scenarios from here:
1a. ZNGA finds support at the $6.25-$6.26 level and will bounce.
1b. ZNGA breaks through middle Bollinger Band and continues to the upper Bollinger Band.
NOTE: I will close my position if it breaks above the middle Bollinger Band.
2a. ZNGA finds support at the $6.25-$6.26 level and will bounce.
2b. ZNGA rises to middle Bollinger Band with big resistance and continues to head downwards after the attempt towards the $6.00 range.
3a. ZNGA blows past the support at the $6.25-$6.26 level, where I believe it will head towards the $6.00 range.
Be careful of a false bear flag. Tread lightly with this.
Comment:
After-hours show some downwards pressure towards my suggested support of $6.25-$6.26. As we know AH with low volume doesn't tell us much, but it is something to think about.
I will give a status update once the weekend is over.
I will give a status update once the weekend is over.
Comment:
This morning, price touched $6.20. Looks like the $6.25-$6.26 support has become a resistance line, as ZNGA is having trouble pushing above it. If the price can break down through $6.20 again, it will reinforce my bearish outlook. I will give another update towards the end of the day.
Comment:
ZNGA broke past the middle Bollinger Band on the 4HR and finding the bottom Bollinger Band limit. Currently the price is following my #2 scenario where the price may rebound back to the middle Bollinger Band after bouncing from the bottom. This is where I am hoping it will find large resistance and will continue towards the $6.00 mark.
I will close my position if the price breaks above the middle Bollinger Band with confidence and volume (~$6.30).
I will close my position if the price breaks above the middle Bollinger Band with confidence and volume (~$6.30).
Trade active:
Price saw a strong resistance at $6.30 (middle Bollinger Band), which resulted in the price bouncing downwards from it. It will be interesting to see what happens the rest of the week. I consider this trade active and will update you guys accordingly.
Good luck all!
Good luck all!
My current position is 12/20/19 $6.00 Puts.