ZNGA going higher?
Updated
Zynga's previous resistance around $9.50 in October and November last year turned into support at the start of this year. ZNGA spent the first three weeks of the year building support in the $9.50-$10.00 range before breaking higher. The stock is now in an established uptrend, but currently looks a little over extended. I'm expecting a slight pullback and some consolidation in the $11.00-$12.00 range before another leg higher can be attempted. However, as of Monday night after a long three day weekend, the shares are up about 2.5% to $11.90. If ZNGA opens below $12 and continues higher throughout the day, I anticipate another few dollars worth of gains in the coming weeks. However, if it breaks below previous resistance (current support) and closes below $11, the party could be over and a new downtrend could be on the way.
Note
A few other things that might hinder ZNGA: the current float is about a billion shares, so it likely won't move as fast as other lower priced stocks. There's also very little chance of a short squeeze, as the current short float is only around 6%.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.