ZNGA pushes through Wednesday's high
Zynga Inc. (ZNGA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ZNGA ended Thursday at 6.74 surging $0.53 (8.53%), strongly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on March 13th, ZNGA actually lost -10.38% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 6.49, the share confirmed its breakout through the previous session high after trading up to $0.29 above it intraday.
Daily Candlestick Chart (ZNGA as at Mar 26, 2020):
Thursday's trading range has been $0.45 (7.11%), that's slightly below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ZNGA. Prices continued to consolidate within a tight trading range between 5.91 and 6.78 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 200-day moving average at 6.23. Unable to break through the key technical resistance level at 6.75 (R1), Zynga closed below it after spiking up to 6.78 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 6.78 where further buy stops could get triggered. With prices trading close to this year's high at 7.42, upside momentum might accelerate should ZNGA be able to break out to new highs for the year.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Zynga. Out of 74 times, ZNGA closed higher 58.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.76% with an average market move of 1.47%.