I’ve discussed this stock here before, and it’s not let us down.
Now its earnings estimates are rising and the chart pattern looks explosive again.
Read below for the next trade on this hot cyber-security stock
As you can see in the chart below, ZScaler (ZS) held its 50 day moving average in the recent market correction.
Zacks reports that over the last month, while the market was declining, the consensus earnings estimates for the next 12 months has increased by 36%. That’s and impressive jump, and it factors in 6 different analysts.
Now it has a 3-day consolidation pattern near its all-time highs.
If it breaks above 78.50 it’s a buy and likely to test new highs. If the general market is bullish this is likely to explode into a new mult-week move higher.
The best stop would be under $73, but under $74 is also a good choice.
Keep in mind that the market is still on shaky footing and the upcoming Fed meeting and the G20 meeting could create more downside volatility.
As a result, I would not pay more than 79 in order to keep the trade’s risk low.
Rick Nartarian, Chief Investment Officer
The American Investor Daily