Chaudhry said Zscaler's mission from the beginning was to allow employees to work from anywhere, that's why when the pandemic hit they were ready and could help companies quickly.
Chaudhry added that the cybersecurity market is big enough for all players, but those who are in the cloud will be the big winners. With the rollout of 5G wireless, many people won't even need traditional networks anymore.
We last wrote about ZS back on March 20 where we said that, "If you have risk capital and can afford to risk below $40 you could approach the long side of ZS. Will the Point and Figure chart be correct about a rally to $89? " Now that prices have left our $89 price target in the dust we need to look at some current charts.
In this updated daily bar chart ZS, below, we can see that prices gapped higher on Friday and continued to soar. ZS is well above the rising 50-day moving average line as well as the bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line has made a new high for the move up from October which tells us that buyers of ZS have been more aggressive for months.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late March and it is still pointed up.
In this weekly bar chart of ZS, below, we do not have a lot of price history but what we do have is bullish. Prices are in an uptrend with a rising 40-week moving average line. There's a rising OBV line and a bullish MACD oscillator.
In this Point and Figure chart of ZS, below, we can see a $152 price target.
Bottom line strategy: After Friday's gap up and sharp rally we could see prices trade sideways a bit before renewed gains. Continue to hold longs from March. If there is a shallow dip you can add to that position perhaps near $95. Raise stops to below $89. The $150 area is our next potential price target.