ZS - Breakout Confirmed — Now What?Zscaler has broken out of a year-long ceiling with volume and momentum — as long as it holds above $275, the trend has shifted bullish and targets $310+ are now in play.
1. Structural Breakout
That resistance zone capped price for over a year — multiple failed attempts, including the November–December 2023 top. This breakout is significant, and invalidates the bear case that this zone would hold again. ZS has now entered open-air territory — next real resistance isn’t until $310–320 (based on prior highs from 2021–2022).
2. RSI & MACD Still Hot – But Not Crashing
RSI is cooling slightly from extreme overbought (still ~79), but hasn't broken down — momentum remains bullish. MACD still trending higher, although it's stretched — but no bearish crossover yet. As long as price consolidates above the breakout zone, these indicators can reset without breaking the trend.
3. Volume Validates the Move
The breakout came on surging volume — a textbook confirmation signal. This is not a weak breakout or bull trap; this is buyers forcing a regime change. Institutions were clearly active.
The Playbook from Here:
🟢 Bull Case (Primary Scenario)
Price holds above $275–280 on any retest → confirms breakout
RSI cools into the 60s without sharp reversal
MACD slowly resets while price trends sideways/up
Target = $310–320 next resistance zone (late 2021 levels)
🔴 Bear Case (Only If)
Fails back below $275 on volume → false breakout
RSI breaks sharply below 60 and MACD crosses down hard
This would put $250–257 back in play as a retracement target
