Zillow Group, Inc. (ZG) has faced a lot of headwinds in 2021. It pulled the plug on its home flipping segment, Zillow Offers, a big revenue generator. That hurt the company's bottom line, but, since then, Zillow Group has exhibited signs of turning around. It's made technological strides by offering a cool app and is experimenting in the AI space to create a user experience that eases the home search process.
ZG and Zillow Group Class C Shares (Z) were two stocks that made it to the StockCharts Technical Ranking (SCTR) scan on June 6. The stock has been trending higher, bouncing off its 100-day moving average (MA), but it's worth looking at its weekly chart to see how much upside potential the stock has.
After peaking in February 2021, Zillow's stock price plunged, reaching a low in October 2022 that was close to its March 2020 low. Since October, the stock price has been rising and is trading above its 50-week MA. The 100-week MA is still trending lower, and the 200-week MA is relatively flat. These moving averages can act as support and resistance levels. Note that the 20-week MA is, at the moment, acting as a short-term support level.
Is the stock one to add to your portfolio? Let's look at the daily chart.
The 50- and 100-day MAs are trending upward, which is a positive sign for the stock. Looking at the one-year daily chart, the stock is approaching a short-term resistance level of around $48, its most recent high (see chart below).
The SCTR score has been above 70 since March 20, and its relative strength with respect to the S&P 500 index is in positive territory. Overall, ZG is showing strength. If the stock falls below its 100-day MA and stays below it, then the uptrend would no longer be in play.
Here are some of the other stocks that showed up on the large-cap SCTR scan. Do you detect any industry trends?
American Express Co. (AXP)
Baidu (BIDU)
Discover Financial Services (DFS)
Expedia, Inc. (EXPE)
Hyatt Hotels Corp. (H)
InterContinental Hotels Group PLC (IHG)
Marriott International, Inc. (MAR)
On June 1, Docusign, Inc. (DOCU) was the featured SCTR scan stock. Let's look at how that stock is performing.
The SCTR is still moving higher, as is the relative strength with respect to the S&P 500 index ($SPX). The Cup with Handle (er, teapot) pattern is still in play. And the stock has broken above its $58.80 resistance level, although volume could be higher. So the conditions from last week are still valid.
[country is US] and [sma(20,volume) > 100000] and [[SCTR.large x 76] or [SCTR.large x 78] or [SCTR.large x80]]
Credit: Greg Schnell, CMT, MFTA.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.