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Fan Yang

Zillow (Z) Breaks Trendline and Tests Support Pivot

Zillow $Z has cracked a rising trendline and is now testing a support pivot, which was the April low, at $46.30. From the weight of the recent dip, it looks like we will see further downside towards the next key pivot around $40. 

Zillow Weekly Chart

(click to enlarge)

April Support:
- Zillow looks bearish from the weekly chart.
- Also, the overall market appears to be taking some steps back.
- The combination of factors suggests the market will not be supporting Zillow here above $46.
- Let's see what the market does by the end of the week. 
- If price closes below $46, I think we will see price in the $37.50-$40 area before seeing support.
- If price holds above, we should monitor the $50-$52 area. If price finds resistance here, we still might have downside towards the $37.50-$40 area.
- A rebound from $46 back above $52 suggests upside towards the $57.50-$60 area, with implications of bullish continuation.
- For now, I would prefer focusing on the bearish outlook, and wait for Zillow to be oversold on the weekly chart (with the RSI at 30). 
- With the weekly RSI around 30 and price around $40, I would be more comfortable considering a buy.