Zions Bancorp (ZION) has struggled on the charts since February and it looks like the down draft is not over yet. Let's check on the charts and indicators.
In this daily bar chart of ZION, below, we can see a downward trend over the past year. Prices are below the declining 50-day moving average line and below the declining 200-day line. The On-Balance-Volume (OBV) line shows me weakness into October followed by a minor upward trend. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of ZION, below, I can see a stock that is struggling. Prices are in a longer-term downward trend and trade below the declining 40-week moving average line. The weekly OBV line is in a downtrend and is barely steady in the past two months. The MACD oscillator is bearish.
In this daily Point and Figure chart of ZION, below, we can see a potential downside price target in the $36 area.
In this weekly Point and Figure chart of ZION, below, we can see the same downside price target of $36 as seen on the daily chart above.
Bottom line strategy: Traders should avoid the long side of ZION as the charts and indicators point to further declines in the months ahead.
