After a recent large pull-back, Zillow has resumed its long-term up-trend. It is currently giving us a good buying opportunity and it likely to bounce off these strong supports:
* 2-year moving average (shown by the dark-blue line).
* 10-month moving average (shown by the light-blue line).
* 38% Fibonacci Retracement (shown by the red line).
Notice what you see on Zillow's chart, that the seasonally slow time of the year for real estate is when ZG has bottomed.
It bottomed meaningfully in 2011-2012-2013 and was only a trading bottom in 2014.
We could see the same pattern again this year, and today is the earliest bottom that we saw from last year.
Real estate is a seasonal business and now...
After forming a textbook cup-and-handle, the stock broke out as expected. We are now seeing a bull-flag form and expect the stock to breakout higher. It could retreat as far as $28.50 before breaking out.