Chart of the Week: Zscaler Inc
It’s time for our chart of the week, and we are talking about the tech name Zcaler. ZS is the symbol. Let’s take a look at this chart. It looks really strong right now in the face of some technology volatility. Zcaler is actually winning the game over here.
You can see that the stock has created a nice bull-shaped pattern over the past three and a half to four months. We came and dipped down over here on some pretty heavy volume days back in July and back in early August. We made a bottom down over here, tested that bottom in September, and have been making higher highs and higher lows ever since.
You can see that pattern has been playing out nicely over here. What do we have next in store? So, as it broke out to a new all-time high over here back, about a week and a half ago, it went up, came back down, tested that trend line, that upper trend line here that’s holding nicely as support, and we’ve broken out and been starting to make higher highs, higher lows. Relative strength is super strong over here. Making higher highs, higher lows, also in that indicator.
MACD is on a buy signal, and volume trends have been real strong here. So, what do we do here? The earnings are going to be coming out in about six and a half weeks for Zcaler, and listen, you know what? When the trend is strong, momentum is very, very good with a particular stock, you just stay with it.
If you’re in the stock already, if you have some calls or if you’re short puts or if you’re in the stock as well, just sell some sell pieces of it as it continues to move up and roll up your calls and roll down your puts or something like that and you know stay with the trend because this is a nice bullish pattern over here the with a bull pattern.
We’ve also been seeing some cup and handle patterns over here. Here you can see the cup here with the handle over here, right above there. We crossed above the neckline of that cup and making higher highs again on better volume as well. So I do like Zcaler here, probably making a run up towards 350 to 375 in the next several weeks.
Thanks for much much for watching everyone, and I’ll see you guys next time.
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