Let’s follow up on Papa John’s and get your eyes on Zscaler! (April 14, 2020)
PZZA ZS
This is Scott with your Free Chart of the Day. There are two charts that I want to show you today. First off I want to follow-up on the chart that I shared with you last night, that is Papa John’s Pizza ( NASDAQ: PZZA ). We are looking at Papa John’s ( NASDAQ: PZZA ) for a move above $63.00 and we got it today. In fact, we got a couple of points here out of Papa John’s ( NASDAQ: PZZA ).
Now, I will be honest with you, I was a little skeptical about this stock, maybe the first hour of the day. If I break things down to a short-term chart here you can see first thing in the morning it could not break that $63.00 level and the volume on the stock was quite small. But it was riding this 8 EMA, so the stock was staying in trend. Eventually, we broke above and some volume came in and helped push this stock up a couple of bucks. We had a bunch of members taking part in this move on the website and made a nice gain out of it.
If you took this trade today and you are still in it I would probably recommend moving my stop up from the 50-day moving average to around that $63.00 level. That area acted as resistance and ideally we now want that area to act as support, so that is what I would recommend for managing this trade.
Now, the second chart I want to share with you tonight is Zscaler ( NASDAQ: ZS ). Zscaler ( NASDAQ: ZS ) is back at the highs it was at before the market rolled over. In fact, a lot of software stocks are looking pretty good. So we are back here at the highs and we moved up with conviction, today’s move coming on almost higher than average volume. This stock has 3-days of short interest and if I am shorting Zscaler ( NASDAQ: ZS ) I am looking at this back at the highs thinking maybe I should cover my short if this goes a little higher. We could get a little bit of a squeeze here on ZS ( NASDAQ: ZS ), that’s what I am looking for.
So maybe set an alert, we want the stock to get above and stay above 66.75 here on ZS ( NASDAQ: ZS ). If I break things down to a weekly chart you can see we are back above the weekly 50-period simple moving average. And if this breaks that level and stays above that level it’s making a new weekly high so that is bullish for this stock. So have an alert set on Zscaler ( NASDAQ: ZS ) at around 66.75; you want the stock to get above that level and stay above that level.
Free Chart