ZSCA trade ideas
ZS Gap FIll ReversalZS has ran up and completely filled the gap in its chart 100% all the way up to the 200 sma resistance on the daily chart. It has also reached 50 sma resistance on the weekly. Now that its completely filled the gap, we can expect a fade in price back to the lower timeframe moving averages and next support level. Looking for this to retrace back to the $56 and $53 price levels.
$ZS Zscaler on breakout alert.Looking for a entry on a break above middle Bollinger Band and POC at approx $46.80
Indicators are all in bullish trajectory .
Stock is still 46 % down from its summer highs with some large gaps above.
21% short interest could be the catalyst for a nice rally
The average analysts price target is $63
Company profile
Zscaler, Inc. engages in the provision of cloud-based internet security platform. It operates through the United States and Rest of the World geographical segments. It offers Zcaler internet access, private access, and platform. The company was founded by Jay Chaudhry and K. Kailash in September 2007 and is headquartered in San Jose, CA.
Zscaler Inc Upgraded to buy Entry level $45.75 = Target price $51.74 = Stop loss $44.40
Todays upgrade
Zscaler initiated with a Buy at DA Davidson. DA Davidson analyst Andrew Nowinski initiated coverage of Zscaler (ZS) with a Buy rating and $55 price target. The analyst notes that the company is faced with near-term concerns related to the global macro backdrop and the potential disruption from the recent transition of head of sales change, but he sees its move to the cloud, tailwinds from the Microsoft (MSFT) partnership, SD-WAN adoption, and the growing opportunity in the Public Sector vertical offsetting these issues
Source thefly.com
High short interest of 20.26% which could ignite a rally.
Average analysts recommendation $66 | Overweight.
Company profile
Zscaler, Inc. engages in the provision of cloud-based internet security platform. It operates through the United States and Rest of the World geographical segments. It offers Zcaler internet access, private access, and platform. The company was founded by Jay Chaudhry and K. Kailash in September 2007 and is headquartered in San Jose, CA.
ZS - Scaling InZS had a gap up due to earnings back on March 1st. The stock saw a rise in price within a bullish price channel but was creating a bearish divergence with the RSI indicator. Even with the pullback, the price remained in the bullish channel until it broke down in mid-August.
Another earnings report in September led to a gap down that created an Island Reversal pattern & carried the stock price below the March gap, which was now acting as resistance.
The stock price continued falling as it tested that March gap resistance a few times but as the price fell the RSI has moved higher creating a Bullish Divergence.
With the price moving out of an oversold condition I am looking for the price to move up to re-test the September gap resistance. Depending on bullish momentum the stock may be able to continue rising to fill the September gap.
$ZS (Zscaler Inc.) Long Positition Momentum TradeFor the public record -- I've taken a LONG position in ZS (Zscaler Inc.)
My trade is technical, and I've taken the trade given I perceive a positive upward momentum breakout to be on the horizon for the stock.
My opinions and trade actions are not recommendations to anyone to buy or sell any financial instrument. I'm simply posting the executions of my trades for the record.
ZS Support Line? Neg Earnings Brought us Here- Over SoldNot so many days ago, ZS missed earnings by a little bit but still show strong revenue support.
You can see the downward gap on earnings day.
BUT-
Back in February you see the Positive Power Earnings Gap from the $50 support level up to the $57 level. Almost the exact same line as this recent earnings fall. This triggered an OVER SOLD on my watchlist and took a look at RSI well below 30. I love these spots and when looked at trend from beginning of the year through beginning of July, ZS was steadily in growth mode. We are at a greater than 40% price break from the 52 week high of 89.54
Let's see if we can't reach that GAP back up to $59 over the next month or so.
Thoughts?