Zynga Inc. [NASDAQ: ZNGA] stock didn’t have much activity on Tuesday. Volumes were low, and it dropped slightly by 0.63%, to close the day at $6.29. However, even in this low volumes environment, ZNGA was bullish in the day.
All through Tuesday’s trading session, ZNGA was forming higher lows, a pattern that is usually indicative of increasing bullish momentum. After a bullish reversal at $6.21, Zynga has been on the rise, and retraced twice. The first retracement saw it set a low of $6.26. It then gained bullish momentum again, before retracing to form a higher low at $6.28. One of the key levels that traders will be watching in the day is Tuesday’s high of $6.32. If it pushes above this level in the day, there could be a good chance that it could test new highs. It would be an indicator that bulls are in control, and could possibly push this stock higher in the day.
On the lower side, the key level to watch will be $6.26. If the price drops below this level, it could be an indicator that the bullish setup has been broken. This could see Zynga possibly retest the day’s key support at $6.21. A break below this level, could mark the beginning of a short-term bearish trend.
However, the overall momentum is bullish. Zynga has been trading above the 50-day moving average at $6.16 for over a or so month. This is a strong indicator that bullish sentiment is strong in this stock. The fundamentals also seem to paint a bullish picture of the company. Recently, the company announced that it is preparing a series of new games for the 2nd half of 2019. According to the CEO, these games will bring a significant addition to its revenues. Historically, the second half of the year has always been big for Zynga in terms of revenues. As such, new games could help the company with increased revenues.
Like I always say, “Trade the Charts, NOT the Stocks.”