Long-Term Buy for ZG (Zillow.com)After a recent large pull-back, Zillow has resumed its long-term up-trend. It is currently giving us a good buying opportunity and it likely to bounce off these strong supports:
* 2-year moving average (shown by the dark-blue line).
* 10-month moving average (shown by the light-blue line).
* 38% Fibonacci Retracement (shown by the red line).
If price can stay above the 2-year moving average, we can expect ZG to head to new highs over the next 2 years.
Z trade ideas
Zillow Group - ZG - Seasonal bottom in Nov-Dec each yearNotice what you see on Zillow's chart, that the seasonally slow time of the year for real estate is when ZG has bottomed.
It bottomed meaningfully in 2011-2012-2013 and was only a trading bottom in 2014.
We could see the same pattern again this year, and today is the earliest bottom that we saw from last year.
Real estate is a seasonal business and now that employment statistics are turning up with today's 271,000 jobs number, maybe it will make investors look around the corner at beneficiaries of strong wage growth.
Overall: Risk is high because Zillow is a volatile stock and trades in a roughly 5% range each day. The 2015 range is about 100% (from 21-42) versus the S&P500 at only 15% high to low. So, it is 6 TIMES more volatile than the stock market on an annual basis and 4 times more on a daily trading basis. So keep that in mind.
EPS have already been reported and the stock had better than expected earnings (actually a loss of 9 cents, but expectations were for a loss of 18 cents). So you don't have "earnings risk" at the moment, which is a bonus.
I'm buying half here and leaving half to buy sometime later this month or early next month. ZG is up to 27.70 as I type now and I started typing when it was 27.25 at the low of the day. My point: The stock is volatile.
You can also look at symbol: Z which is also Zillow. There are voting shares and non-voting shares. The non-voting shares are the lower priced of the two.
Tim
10:22AM EST November 6, 2015 ZG 27.53bid x 27.57ask last.
Zillow Group Inc - Z - Daily - Pullback to supportI published this chart in October and now Zillow has pulled back to the levels where I had suggested to look for a re-entry for a re-test of the high near $33.50. Zillow is quite volatile and moves 6% per day, which is 3 times the volatility of the overall market.
The risk from here is a move under $25 or 10% lower while upside is for a move up to $33 or a bit more than 20% for ratio of 2:1 (measured potential/ measured risk).
Look for relative strength to the overall market to confirm a long position in Zillow.
Zillow.com and Trulia.com are the leading real estate websites in the USA. They merged and trade under the symbol Z and ZG.
Tim
9:14AM EST 11/2/2015
BREAKOUT for Zillow Group - Z - Daily - Target $31.50Zillow and Trulia merged to form ZILLOW GROUP and now trades under the symbol Z. There are no charts published here at TradingView under the new Z symbol.
A breakout to newhighs in this market condition are very bullish for Zillow Group.
Buy pullbacks to this zone and target a retest of the high and use oversold readings of CCI(11) to buy and add on strength after corrections.
I think this is a great new trend and it likely will have a decent amount of time to rally. I would like to see more volume on the breakout that we are seeing today, but I think it is a sign that there are a few buyers and the sellers are cleared out of the way. New buyers would have to drive up the price very fast to find stock to buy.
Zillow - Z - 29.80 last
Tim 3:17PM EST Wed Oct 7, 2015
How to combine Indicators for trading?A simple post on how to combine indicators to have an edge.
1. Understand the Indicators and its function.
2. Understand the price action
3. Create rules, that work for "you"
4. Stick to the Plan.
5. Manage what we know.....
For eg.
1. Squeeze on Weekly - Chart is sideways
2. Top and Bottom Indicator works well in a sideways market.
3. We cannot apply the TOP&Bottom on weekly because, its range is tight. Therefore, we switch timeframe to find the swing, that's good enough to trade
4. In this case, Daily / 2Day chart will work.
5. Apply the top & bottom indicator to the weekly squeeze.
- Creating strategies / Analyzing charts will only constitute for a 15% of the trading game.
- Other 85% still remain on RISK MANAGEMENT.
Developing risk management ===> Developing rules for the strategy.
Bottom at 99Z seems to have bottomed at 99, ER is very close, and several indicators are rotating to the upside, we have momentum rotating to the upside, Downtrend has stopped and accumulation is starting to show positive signs. If ER is good enough this will create a short squeeze with a target between 115 and 120.
Zillow Inc - Z - Daily - Coming off a base with lower valuationZillow is at the low end of its one year "valuation range" of 14-13 times sales. This PSR is the Price-to-Sales-Ratio and is a measure of the market cap (Price) to the revenues (Sales) of the stock. It is a helpful measuring tool.
Zillow has unfurled and come under pressure after the announcement about merging with Trulia. Since then it has fallen from 150+ down to the 105 level.
CCI (Commodity Channel Index) is a pure technical measurement of price against its 21 day moving average) is turning up, which suggests that downside momentum is waning.
Earnings are due in early November. There is a key level of resistance up at the $125 level and a level I am targeting for a move higher from the 109 level now. I view downside risk as the $100 level. Upside of 15 pts, vs 9 pts of downside. I would be buying a drop to 103 also as that is a big support level also.
Tim
108.96 last 3:27PM EST 10/23/2014