Shares of cybersecurity firm Zscaler (ZS) are sharply lower Friday, despite an earnings and revenue beat Thursday night. Let's check out the charts.
In this daily bar chart of ZS, below, I see that prices have gapped below the 50-day moving average line today. This condition may not last by the close of trading Friday but ZS will remain below the declining 200-day moving average line. The trading volume pattern does not look like it is a positive and the On-Balance-Volume (OBV) line remains weak. The Moving Average Convergence Divergence (MACD) oscillator is pointed down toward the zero-line.
In this weekly Japanese candlestick chart of ZS, below, I see a chart that needs more development. Prices are still below the declining 40-week moving average line. The candles have not made a reversal. The OBV line is soft and the Moving Average Convergence Divergence (MACD) oscillator oscillator is still bearish.
In this daily Point and Figure chart of ZS, below, I can see a potential downside price target in the $112 area.
In this weekly Point and Figure chart of ZS, below, I see a downside price target in the $101 area.
Bottom line strategy: Until the charts and indicators of ZS turn more positive, I will recommend avoiding the long side.
