SIA Charts’ relative strength rankings help investors spot stocks outperforming their peers or index benchmarks. Outperformance often signals rising investor confidence in a company’s or sector’s growth potential. These rankings highlight not only which stocks are leading or lagging within a universe but also when relative performance trends begin to shift. The SIA platform’s real power lies in its ability to identify these evolving money flow trends early.
In today’s Daily Stock Report, we revisit Zscaler Inc. (ZS), a name that continues to demonstrate strong relative performance. Our previous review on May 27, 2025, came shortly after Zscaler entered the favored zone of the SIA Nasdaq 100 Index on April 24th at $210.14. Since then, the stock has maintained its green “favored” status, with only brief dips to the top of the neutral zone, never into the red unfavored area, underscoring its strength and resilience since spring. As of yesterday’s close, shares stood at $317.92, up 51% from their favored-zone entry, rising one spot in the past week and six spots over the past month to hold the 19th position in the Nasdaq 100 report.
From a technical perspective, when analyzing the candlestick chart of ZS, we see an interesting pattern where the shares broke out to the upside in October of 2023 at the $160 level on its way to a strong uptrend stalling at $260 in February of 2024. Then the shares pulled back at that point until Sept of last year at the $160 area which was the same level as the beginning of the breakout in October of 2023. The shares began to reassert themselves in April of this year when the overall markets started to stabilize and broke above its old February 2024 high at $260 and made a new higher high when it traded just a hair above the $320.00 level earlier this month. With such a large move, the shares may pause to consolidate its gain with support right here at just under $320.00. If this current level doesn’t hold, then the next more defined area of support is at just around the $270.00 range.
As we examine the Point and Figure chart on a 2% scale, we see the shares move in a massive fashion with a rising column of X’s lasting 29 boxes from the May to July time period. Not surprisingly, with such a large move, the shares pulled back and found support at the $269.00 price point, which was almost at the same level as the February 2024 peak. Just last month, the shares ascended upwards again, breaking past the July high at $315.45 onto a new higher high. If the shares pause, the next area of support to watch is at the 3 box reversal of $309.27 and, further support below that at around the $297.26 which is close to the $300 round number. As the shares are quite volatile, next support below that could potentially be right back at its last break out point of $263.96. If the shares continue to remain strong, next resistance is at $369.60 and $384.53 based on a measured move. ZS currently exhibits a bullish Double Top pattern and with a positive SMAX score of a perfect 10 out of 10 it is showing very strong near term strength against the asset classes.
Zscaler is cloud-based cybersecurity company that helps organizations securely connect users to applications and data—is now being highlighted as a name that continues to improve technically. Its Zero Trust Exchange platform replaces traditional network security appliances with a cloud-native solution that inspects traffic in real time and enforces least-privilege access, significantly reducing risk in today’s hybrid work environments.
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