0ZC trade ideas
Zacaler - A True Cloud KingLooking for buys after a breakout of the downtrend or when price gets between $53-$60
ZS Support Line? Neg Earnings Brought us Here- Over SoldNot so many days ago, ZS missed earnings by a little bit but still show strong revenue support.
You can see the downward gap on earnings day.
BUT-
Back in February you see the Positive Power Earnings Gap from the $50 support level up to the $57 level. Almost the exact same line as this recent earnings fall. This triggered an OVER SOLD on my watchlist and took a look at RSI well below 30. I love these spots and when looked at trend from beginning of the year through beginning of July, ZS was steadily in growth mode. We are at a greater than 40% price break from the 52 week high of 89.54
Let's see if we can't reach that GAP back up to $59 over the next month or so.
Thoughts?
ZScaler at volume support with possible upward catalystZScaler plummeted last week after the company issued 2020 earnings guidance well below Wall Street's expectations. The company's fourth-quarter earnings handily beat Street expectations and its revenue guidance is in line with expectations, but it forecast earnings of only 12-15 cents per share versus Street expectations of 19 cents per share. In part that's because of the high cost of sales and marketing, which account for a whopping 57% of revenue!
The stock has significant support around $49-50, and on Tuesday it announced a product collaboration with Crowdstrike. Like ZScaler, Crowdstrike also took a hit recently due to earnings guidance below expectations. The collaboration could serve as a catalyst for both companies, although it probably won't translate into revenue anytime soon. Analysts consider ZScaler's evaluation to still be pretty high, with a price-to-sales ratio of 16.
A break of my red trend line would be bullish for the stock, but I'd like to see a further pullback to the stronger volume support at 39.62 before entry.
Put sale on ZSI have been wanting to sell a put on ZS on a pullback decent premium over earnings at another 30% discount from current price. 60% QoQ sales growth.
Zscaler ZS - Bullish after deeper correctionA couple of bullish counts for this Nasdaq stock suggesting that while it may undergo a much deeper correction this is part of a continued uptrend. As always, time will give me an answer.
ZS RetestZS recently broke out to all time highs. It has now pulled back to retest prior resistance, now support of those previous levels. Its an all-time high breakout retest. On the pullback there was decreasing volume, showing there isn't enough sellers to keep pushing it down beyond the support level. This pullback retest will now give ZS more momentum to continue to the upside. I'm looking to take profits at the the 87-88 levels which will give a nice 8-9% gain and a 2:1 risk/reward.
ZS Call I feel like although the market broke through resistance, we must remember that our lines are not concrete and work more like a rubberband. So the more they pull down on them the higher they will go after when the market is trending! Share your comments
ZS, Long 16% ProfitWe have an ascending channel on ZS with an entrance right now at 67.7$. MACD still bullish, we can expect a bounce of the RSI on the 40 zone. The SL can be tight at 65.5$ and TP at 78.6$ results in a good Risk/Reward.
ZS key trend line + Zigzag harmonic fractal researchMomentum stock should be dealt with care especially before earnings.
Know your risk when trading high valuation stocks.
