The pattern shown in the chart was triggered during August but the price ended up creating a False Break to the neck line (assumed to be the 2.4 ).
If that's a False Break, we may expect $ZNGA to breakout on the other direction (meaning - up).
It needs the support of the Market to breakout of the daily downtrend line and the 50 line that comes with it.
The initial signal should be a close above the fast line (which hasn't happened yet!)
If the price will close above 2.5 it may rally towards the 50 line and the 200 line as short term targets but if the price will breakout of the , we can assume that eventually it will try and reach the top of the trading range near 2.8.
The required stop loss here is about 20 cents right now (below 2.4$) but for those who seek longer term positions should place wider stop loss, below 2.2$.
For the bears among you, a close below 2.4$ could trigger the back again that may push the price below 2.2 towards 2.0-2.1$ to complete a pattern
This analysis is part of the Weekly Markets Analysis newsletters
To read more interesting technical reviews - http://goo.gl/8A6fTH
To subscribe to the newsletters - http://goo.gl/HXjCPV