After a bullish engulfing on Tuesday, Zynga (ZNGA) surged to triangle resistance with high volume on Wednesday. Overall, chartists can make a bullish case for this internet-mobile gaming company. A higher low formed in August and the stock surged above the July high with good volume in September. The subsequent triangle consolidation represents a rest after this big move and a break above triangle resistance would signal a continuation higher. Careful with this one because the combination of low price and high volatility make this a high-risk play – either way.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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