Zuora, Inc. (ZUO) has been rallying since late August and has extended those gains ahead of its second-quarter fiscal 2021 earnings release after the close of trading Wednesday.
Let's check out the charts of this firm that provides cloud-based software to companies to launch, manage, and transform into a subscription business.
In this daily bar chart of ZUO, below, we can see that late last month prices rallied above the declining 200-day moving average line and the bottoming 50-day moving average line.
The On-Balance-Volume (OBV) line turned higher telling us that buyers of ZUO have become more aggressive and this gives us more confidence that the rally can persist. The Moving Average Convergence Divergence (MACD) oscillator has turned upwards for a fresh outright buy signal.
In this weekly bar chart of ZUO, below, we can see that prices were in a downtrend from 2018 and only recently closed above the declining 40-week moving average line.
The weekly OBV line has been quietly rising since October of last year and suggests that buyers have been slowly accumulating (buying) long positions.
The MACD oscillator has moved up and is now just slightly below the zero line. An outright go long signal could be seen soon.
In this daily Point and Figure chart of ZUO, below, we can see a potential upside price target in the $22 area.
Bottom line strategy: I have no special knowledge of the earnings for ZUO but traders are buying shares more aggressively. The $22 area is our initial price objective.
