16th December, 2021, 5:07 PM
Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.
And on 10th Dec, Nasdaq has announced that Zscaler the leader in cloud security will be included in the Nasdaq-100 Index effective prior to market open on Monday, December 20, 2021. It is always a milestone for any company to be included in the Nasdaq 100 and its a mark of trust and growth for the company.
In the recent weeks, ZS has been sold down due to inflation worries which might present a good opportunity to scale in. It has corrected about 25% since the high and have found some support at around $273.
With an inclusion, we might see more funds buying ZS in order to replicate the Nasdaq100 which could push the price up in the coming days.
Lets take a look at the chart for more details.
Chart source: Tradingview.com
There is a double top formed from Nov to Dec which is a potential resistance and if ZS is unable to cross could spell more downside. Currently it is being resisted by the downtrend line we have drawn and a break of that resistance might see it push higher. We would like volume coming in in order to sustain the rally and push it up to $335 level.
It has to break that for ZS to remain strong if not that might be the temporary end of the rebound. Zscaler is showing good value at current price.
Yours
Humbly
Kelwin&Roy
