Big divergence in RSI. Over bough levels coming down.
All those who bought the bottom will be looking to sell, and we can see this clearly happening as the upward momentum stalls. It will want to test the bottoms again, but I predict it will not form lower lows.
With the market tanking last week Zillow's IVR and IV are at 2 year highs with price in a weekly support zone of 37.75 to 40.
Weekly Linear Regression Slope(LRS) looks to be hitting a bottom with the Daily LRS showing divergence. Obvious risky play due to market conditions
As of Friday selling price of $5.50 on the 33d 40 p/c straddle leaves room for error ...
After crashing down from All Time Highs in July, Zillow has successfully held support at $46, which has historically acted as strong support/resistance .
I'd like to see this retest support before entering. Late year options plays could be a great way to capitalize on the move back to $51, ~10% from the $46 support level .
I am watching Zillow for a long idea here. It is trading at the same levels that were resistance in April and late February. It is also where the top was last summer.
If it closes at or near its highs today I will buy some at the close. My sell stop will be $47.75. I think that makes sense because it is todays low (so far). My sell target will be $56 because ...
Z is ready to breakout of a pennant pattern inside a larger symmetrical triangle. The stochastic divergence signals the continuation of momentum and should drive the price up to the target zone and possibly beyond.
Target: 42.50 - 44.00 (2.41% - 6.02%)