Our last review of Zscaler Inc, (ZS) was on June 18 where we wrote, "Continue to hold longs from previous recommendations. Raise sell stop protection to $95. The $144 to $150 area is our next price target."
Now that prices have broken out to a new high for the move up, a fresh look at the charts seems in order.
In the updated daily bar chart of ZS, below, we can see that the shares traded sideways for much of June but just broke out to new highs Monday. Prices are above the rising 50-day moving average line but not extended above this smoothed trendline. The 200-day moving average line is rising.
The daily On-Balance-Volume (OBV) line has been creeping higher the past month telling us that buyers of ZS have continued their aggressive ways. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside last month for a take profits sell signal but is poised for a turn higher again.