Stock quotes in this article: ZS
In the ZS daily bar chart, below, we can see that stocks stabilized in the $140-$120 area before breaking higher and rallying on Friday. The lagged moving averages – 50 days and 200 days – still have negative slopes, but that’s to be expected.
Trading volume shows an increase in May as interest in the stock has increased. The On-Balance-Volume (OBV) line had been incredibly stable since November, even though stocks lost two-thirds of their value and showed improvement in May.
The Moving Average Convergence Divergence Oscillator (MACD) just turned higher for a signal to buy hedging shorts.
In the ZS weekly Japanese candlestick chart below, we can see some bullish hints. First, there are lower shadows on the three most recent candles around $125. Traders were rejecting the lows and this may portend a rally.
The weekly OBV line shows a decline with a slight improvement in mid-May. The MACD oscillator is bearish but has just started to narrow.
In this daily Point and Figure chart of ZS, below, we can see an upward price target at the $233 area.
In this weekly Point and Figure chart of ZS, below, we can see a downside price target at the $107 area.
Background strategy: Aggressive traders could probe the long side of ZS at current levels or down towards $150, if available. Risk at $138. On the upside, we see a bounce in the $200-$233 area in the next few weeks ahead.
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