Here’s your trade on Zscaler ($ZS) – October 11, 2023
This is Dan Fitzpatrick with FITZ IN FIVE. I want to look at Zscaler ( NASDAQ: ZS ) today and this is why, the thing is just breaking out.
It had been tightening here at around 160.00. And then, just a couple of days ago, on Friday, this really, really broke out nicely on high volume. And then the very next day we got a continuation, this was a gap and run. This thing didn’t even come back and test the prior day’s range in any way. It just gapped up and kept going, I’m sure you know why that is, with everything that’s going on.
We got even heavier volume here. So as I look at this stock I see a stock that has been in a range for a while. It was kind of captured back here, and then finally it’s running out to the upside. So as I look at this stock, they don’t report earnings for about 2 months. As I look at this stock I could easily see this thing running up. We will see if I am right; I could easily see this thing running up to 200.00 just in a series of zig-zags here.
I will track this, and guess what this is not, this is not a prediction. This is something that I do, I call it envisioning. You know how they do stupid stuff like oh, we’re going to defund the police and reimagine law enforcement. This is kind of like that, only not as stupid. This is something that I will do when I am looking at a stock and I am going, okay, it seems to me like I have seen this pattern 98 thousand times before. So what’s it got to do to show me that, yes, I’m right, that this stock is doing what I think it’s going to do?
So rather than just taking a new look at it every single day, where my view might be different depending on how much sleep I had last night, whether I am agitated or sleepy, where I might look at a chart differently, I will draw stuff like this, in a moment of lucidity. And then as the stock marches on, it is either going to prove me correct or it’s not.
This is why I am saying this, because as long as the stock marches along, something like this, and typically I will just draw little vertical lines as if there is a bar chart here, but as long as a stock is doing this, then I will hang through the swings. I will still hold this here, maybe buy a little more up here, but I will hold through the swings.
But if the stock does this, well then, that is something different and I am going to totally stay away from it because it is just not what I envisioned. And so we are not reimagining things here, we are just imagining what the stock would do if it is something that we are going to make a trade on, a profitable trade.
If you are a” freebie”, and you’re not a member of our service, that’s okay. You should be making bank on Meta ( NASDAQ: META ) because I have been giving this away on our Free Chart List. What I will just tell you is, stay long this stock. If you want to talk about envisioning something, I envision this thing just continuing to march up for a while. My bet is, that 350.00 is a good target.
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