Subscription software company Zuora Inc. ( ZUO) is due to report its latest earnings after the close Wednesday, so let's see if investors who are close to the company are leaving any clues in their trail of buying and selling.
In this daily bar chart of ZUO, below, we can see that prices have been weak the past 12 months of trading. ZUO is below the declining 50-day moving average line and below the negatively sloped 200-day average line.
Note that we do not have all that much price history for this stock and the 200-day line. Trading volume has surged on two sharp declines and the On-Balance-Volume (OBV) line is mostly bearish, but it has firmed this month. The Moving Average Convergence Divergence (MACD) oscillator has been below the zero-line a lot, but it is curving upwards to a cover-shorts buy signal.
In this weekly Point and Figure chart of ZUO, below, we can see a downside price target around $11 or a new low for the move down.
Bottom line strategy: We don't have a lot of price history on ZUO, but in this weak market environment, ZUO will probably need some "blow out" numbers from the bean counters to generate a sustained rally.
