Chart of the Day: Zillow Group (Z)

: Z | Zillow Group Inc. Cl C News, Ratings, and Charts

Z – Zillow Group (Z) has tested its channel trendlines multiple times.

Zillow Group, Inc. (Z) engages in the provision of real estate and home-related information marketplaces on mobile and the web. The company has the largest real estate portal in North America. Real estate agents and brokers use Z to generate leads through advertisement.

Z is embarking on what it calls “Real Estate” 2.0”. This initiative should smooth the way for more transactions by helping sellers sell their homes by providing liquidity to homeowners and helping them run virtual tours on Z’s site. These transactions could lead to more services for Z such as mortgages and title insurance. These services could lead to significantly more profits for the company.

The stock is currently trading at $62 which is more than double its March low.

The Tale of the Tape:

 Take a look at the 1-year chart of Zillow below with my added notations:

 

Chart of Z provided by TradingView

Z has formed a down-channel over the past two months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  Think of it by connecting the lower highs and lower lows of a stock’s price with parallel trendlines to show a downward trend. The space between those trendlines is the descending channel.

When it comes to channels, remember that any 3 points can start the channel, but a 4th point or more, confirms it. You can see that Z has tested its channel trendlines multiple times. You could enter a long position on a pullback down to the channel support, or on a breakthrough of the channel resistance. If/when the channel resistance is broken, often a breakout to the upside occurs.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT

@cmtstockcoach

Stock Trading & Investing for Everyone

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

Is the Bull S#*t Rally FINALLY Over?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

Top 3 Investing Strategies for 2020


Z shares were trading at $61.28 per share on Monday morning, up $1.32 (+2.20%). Year-to-date, Z has declined N/A%, versus a -0.73% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp, CMT


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ZGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

A Case of Stock Market Whiplash

Just when the stock market (SPY) was inches away from a record high at 4,000 it got saddled with 6 days of downward pressure. Why did this happen? Is the pain over? What happens next? Read on below for answers …

:  |  News, Ratings, and Charts

Mimecast Secures Stock of the Week Honors

Almost every single stock in the cyber security group is obscenely overpriced. That’s because it is riding one of the hottest growth trends around. However, if you dig deep enough you will find a growing firm in the group that is also a surprisingly good value. That is why MIME is our Stock of the Week.

:  |  News, Ratings, and Charts

Stay Away From These 3 Overvalued EV Stocks

The bullish EV industry outlook has helped many start-ups, without resources or products to trade at sky-high valuations. However, they do not have any substantial technological backing or production capacity to compete with the well-established players. Arcimoto (FUV), Electrameccanica Vehicles (SOLO), and XL Fleet (XL) are three such stocks that are currently trading at extremely high valuations and may witness a significant pullback in the near term.

:  |  News, Ratings, and Charts

4 Healthcare Stocks to Buy and Hold for the Long Term

The healthcare sector in the United States is on the cusp of major growth. Factors such as positivity around the COVID-19 vaccine, an ageing U.S. population, and optimism over developments in the treatment of fatal diseases in general are brightening the prospects for healthcare stocks. Novartis AG (NVS), Abbott Laboratories (ABT), Merck & Company, Inc (MRK), and Eli Lilly and Company (LLY) are cases in point. They are top players in the healthcare space that investors could buy now and hold for the long term.

:  |  News, Ratings, and Charts

Stay Away From These 3 Overvalued EV Stocks

The bullish EV industry outlook has helped many start-ups, without resources or products to trade at sky-high valuations. However, they do not have any substantial technological backing or production capacity to compete with the well-established players. Arcimoto (FUV), Electrameccanica Vehicles (SOLO), and XL Fleet (XL) are three such stocks that are currently trading at extremely high valuations and may witness a significant pullback in the near term.

Read More Stories

More Zillow Group Inc. Cl C (Z) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All Z News