Zscaler Inc. - (ZS) - June 7, 2023 (Daily Stock Report)

by SIACharts.com

Cybersecurity software and service provider Zscaler (ZS) has rocketed up the rankings in the SIA NASDAQ 100 Index Report, rocketing up 81 positions in the last month to 23rd place. Six months stuck in the red zone have ended and the shares have returned to the Green Favored Zone for the first time since August.

Technical signals for Zscaler (ZS) have turned increasingly bullish over the last month. In early May, a long-term downtrend bottomed out near $80.00. The first sign of an upturn appeared when ZS staged a breakaway gap on a big volume spike that cleared the 50-day average and was quickly followed by the shares snapping their long-term downtrend resistance line and completing a large, bullish Rising Wedge pattern. Since then, ZS has remained under accumulation, recently retaking its 200-day average, staging another gap up on volume and breaking through $150.00 for the first time since October.

Based on previous peaks, upside resistance tests appear near $160.00 and $180.00 followed by the $200.00 round number. Initial support appears at the top of the recent gap near $140.00.

A new recovery trend appears to be getting underway in Zscaler (ZS). A year-plus downtrend underwent what appears to be a final flush back in April dropping briefly below $100.00. Starting in May, the shares have roared back to life, soaring back above $150.00, completing a series of Double Top and Spread Double Top breakouts and snapping a long-term 45-degree downtrend line. Potential upside tests on trend appear near $167.40, $192.25, and the $200.00 round number, which are all based on a combination of vertical and horizontal counts plus previous column highs and lows. Initial support appears near $140.50 based on a 3-box reversal.

With a perfect SMAX score of 10, ZS is exhibiting strength across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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