We last looked at ZNGA back on May 28 and said that "Risking a close below $7.50, aggressive traders could go long ZNGA at current levels. Our upside price objective is $18."
Let's check out the latest charts of this social game developer.
In the daily bar chart of ZNGA, below, we can see that the shares rallied from late May to early August but failed to reach our $18 price target. Prices stalled in the $10.00-$10.50 area and then turned lower. ZNGA is trading below the declining 50-day moving average line but above the rising 200-day moving average line.
Prices are holding around the $8.50 area and the On-Balance-Volume (OBV) line looks like it has been stable for a few weeks now. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but close to an upside crossover. That would be a signal to cover shorts should it develop in the days ahead.