$ZS has a long term pattern that you need to see – March 20, 2025
Read the transcript here – COTD – March 20, 2025
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I’m going to take a look at a chart I haven’t seen in a while. Not because it’s a bad chat, it’s just been going sideways for months, and months, and months, and months, and months.
The stock hasn’t been trending in a while. I’m more of a trend follower so I’m waiting to see when this stock does start to trend. But as I was analyzing this stock today, it’s Zscaler ( NASDAQ: ZS ), by the way. As I was analyzing this chart I started to draw just basic support and resistance levels.
One thing I noticed is that I had to keep going. I had to drag out these lines for a long, long time. So if I zoom all the way out here on Zscaler ( NASDAQ: ZS ) we can actually see a pretty interesting chart here. Look at this long drawn-out level of support. Now, it’s not perfect but show me one that is because this is pretty darn perfect, in my opinion.
We have that same kind of pattern from the top here in 2021, tightening into what could be an eventual break of this trend. So what I want to see here on Zscaler ( NASDAQ: ZS ) is, firstly some higher price action. I want to see if this stock can break out of this consolidation and get above this clear downward-sloping trendline and really start to get going.
You may remember, in 2020 and 2021 this was a major winner. And so when this stock does start to trend I actually think it’s going to be pretty powerful. One thing to note as well, their earnings have been ridiculously strong. They haven’t missed an earnings report ever. And so I think Zscaler ( NASDAQ: ZS ) is a bit of a sleeper here.
Where it’s not really doing much of anything other than going sideways. And it keeps slamming into resistance, but it also is bouncing where it should bounce. And so, even if this stock doesn’t break out in the next couple of days, I think it could be very interesting to see what happens as these two lines converge.
I want to have a long-term alert on Zscaler ( NASDAQ: ZS ) right around 216.00-217.00, right around that level there. Because I think if this stock can eventually get above that level and stay above that level, then it could ultimately be a very nice trending stock like it once was in 2020 and 2021.
So this is more of a long-term chart, as I’m searching for relative strength in a choppy market.
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