Zscaler's Charts Are Strong and Keep Getting Stronger

Cybersecurity firm Zscaler (ZS) was raised to an outperform (buy) rating at Macquarie. In my last review of ZS on November 15, I wrote that traders should "Continue to hold longs and raise stops to $148 now. $209 is my first price target for ZS with $235 after that."

Let's check the charts once again.

In this daily bar chart of ZS, below, I can see that prices are approaching my first price target in the $209 area. ZS trades above the rising 50-day moving average line and well above the positively sloped 200-day moving average line.

The On-Balance-Volume (OBV) line shows a positive trend from early May telling me that buyers of ZS have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to the downside as the trend strength weakens. 

In this weekly Japanese candlestick chart of ZS, below, I continue to see a strong looking chart picture. Prices are trading above the rising 40-week moving average line. The weekly trading volume has been shrinking but the weekly OBV line remains strong and pointed higher. The MACD oscillator is in a bullish alignment above the zero line. 

In this daily Point and Figure chart of ZS, below, I can see a new upside price target in the $218 area. 

In this weekly Point and Figure chart of ZS, below, I can still see the $235 price target noted in my November review. 

Bottom line strategy: Traders who are long ZS from earlier recommendations should raise sell stops to $185 from $148. The $209-$218 area is my adjusted price target. 

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