How Will Zynga React To Earnings Today? Big Gaps Above And Below

Zynga Inc. ZNGA shares are trading slightly higher Wednesday as the company is set to report Q4 2021 financial results after market close today. The company expects fourth-quarter revenue to be $675 million. The analyst estimate for revenues is at $720.4 million, an increase of 3.02% from the same period last year.

Zynga was up 0.16% at $9.15 at last check.

See Also: How to Buy Zynga Stock

Zynga Daily Chart Analysis

• The stock has been holding steady since it saw a large gap up in January and looks to be sitting in the middle of a sideways channel. The stock is seeing a period of bullish momentum as the volume has started increasing since the price started increasing. The key support and resistance lines on the chart can be found near the $7.75 level and the $11 mark.
• The stock trades above both the 50-day moving average (green) and 200-day moving average (blue). This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has stayed high since the large gap up in January. The RSI is currently sitting at 70 on the indicator, showing that the stock is in the overbought range. If the RSI continues to stay in this range, the price will likely continue to rise as well.

What’s Next For Zynga?

The stock has been pushing higher since the January gap up and looks to have held the bullish momentum. ZNGA may continue to hold up if the RSI stays near the overbought range, although the earnings announcement may act as a catalyst for a strong price move that could go in either direction.

Bullish traders want to see the stock have good earnings and for shares to continue to form higher lows while the RSI stays above 70.

Bearish traders are looking to see the stock cool off and are hoping for worse than expected earnings. Bears also want to see the stock fall below the moving averages, as well as the $7.75 level.

Photo: Courtesy of Wayne Hsieh on Flickr