Zillow Group Inc. ( Z) is scheduled to report earnings on Tuesday, Nov. 2. Let's take a few minutes away from checking what the website thinks our house is worth to check on the charts of Z.
In our last review of Zillow on Aug. 12 we wrote that, "Price momentum is a leading indicator and it is telling us that the decline in Z is slowing. Wait for two consecutive closes above $102 before probing the long side. Add to longs above $112."
In the daily bar chart of Z, below, we can see that on Friday the stock closed above $102 but so far Monday we are not in a strong position to make that second consecutive close above $102. Prices are still above the rising 50-day moving average line and still below the declining 200-day line.
The On-Balance-Volume (OBV) line broke its decline from the middle of February and has turned up in October. The 12-day price momentum study in the lower panel still shows the pattern of higher lows from July to early October. This bullish divergence is more important, in my opinion, than the price weakness Monday. 
In the weekly Japanese candlestick chart of Z, below, we still see a positive-looking picture. There are some lower shadows in September and October telling us that traders are rejecting the lows.
The trading volume increased on the rally the past two weeks. The OBV line shows bottoming action while the 12-week price momentum shows improving momentum as prices declined -- a bullish divergence.
In this daily Point and Figure chart of Z, below, we can see an upside price target of $124.
In this weekly Point and Figure chart of Z, below, we can see an upside price target of $142.
Bottom-line strategy: If Z closes above $102 Monday you can go long. If not, I would change the strategy to go long on a close above $104. The price targets are $124 and then $142.
