In our last review of Zscaler Inc. ( ZS) back on May 26 we wrote, "Traders who went long ZS on Tuesday ahead of earnings should raise their stop protection to their entry price from $152 and raise their target to $275." Prices reached our $275 price target in late August and one subscriber is curious what we think now. 
Let's go back to the charts.
In this updated daily bar chart of ZS, below, we can see that prices corrected to the downside in September but renewed buying has developed. After a brief break of the rising 50-day moving average line prices are back above this indicator. The On-Balance-Volume (OBV) line actually rose in September even though prices declined -- a bullish clue in my book. The trend-following Moving Average Convergence Divergence (MACD) oscillator is poised for an upside crossover and new buy signal.
In this weekly Japanese candlestick chart of ZS, below, we can see a bearish engulfing pattern in late August/early September. This bearish pattern has only turned prices sideways and not to the downside. Our western indicators are bullish; the slope of the 40-week moving average line is positive. The OBV line is rising and the MACD oscillator has narrowed but is still bullish.
In this daily Point and Figure chart of ZS, below, we can see a new upside price target of $305.
In this weekly close-only five-box reversal Point and Figure chart of ZS, below, we now see a target of $725. Maybe.
Bottom line strategy: If you took profits at $275 in August, terrific. If you are still long ZS, that is great, too. If you are flat you can rebuy ZS here risking to $250. The $305 area is our first price target for now.
