There’s an 80% chance that Z will bounce off its 60-day moving average
Zillow Group Inc (NASDAQ:Z) stock is down 1.5% to trade at $42.61 at last check, but has added over 32% in 2023. After pulling back to the $38 level earlier this month, the security has struggled to overcome pressure from the $44 area, which first emerged in February. That ceiling may soon become a thing of the past, though, as Z is currently within striking distance of a historically bullish trendline.
Specifically, Zillow Group stock is within one standard deviation of its 60-day moving average. Per Schaeffer’s Senior Quantitative Analyst Rocky White’s latest study, the security saw five similar signals over the last three years, and was higher one month later 80% of the time to average a 13.5% gain. A comparable move from its current perch would place shares over $48– well above that level of resistance.
Though short sellers are already hitting the exits, there’s still plenty of pessimism left to unwind, which could generate additional tailwinds. Short interest dipped 3.8% in the last reporting period, but the 18.47 million shares sold short still make up 12.2% the equity’s available float, or over one week’s worth of pent-up buying power.
Image and article originally from www.schaeffersresearch.com. Read the original article here.