ZNGA Update

At the end of October we started to look at ZNGA and establish some interesting charts, in many ways ZNGA is looking like it's getting ready to surprise some people and make a run.

 Here's the daily chart just to get your bearings, the original post about ZNGA linked above, mentioned ZNGA wasn't quite ready back then as a long, but it needed to stay on the radar.

 When we have a 60 min chart with a positive divergence like this, something in the underlying trade is going on, something bullish, but looking at price alone, Wall Street does a great job at not letting on that they are active in the stock.


 Now that we have the longer term, high probability chart established, we look at a 15 min chart, a good timeframe to look for entries, as ZNGA pulled back from the mid-October highs, it's clear there's a solid positive divergence starting in early November.

 And here on a short timeframe, 2 mins, we have the "Quiet Kids" with a couple of days of ZNGA trading in a THREE CENT RANGE! Remember what happened with AMD today!

People miss thee flat areas of trade, they ignore them as being dead space, that is rarely the case. These flat spaces are fertile ground to look for institutional activity; it simply isn't the nature of a stock to act this way unless there's some force working on it-that's your clue.

The only thing I'm a little concerned with is this support area, ZNGA has actually traded just below it, but if there are enough stops/orders there to make it worthwhile, they'll usually hit them before letting it run.

In any case, I'm liking ZNGA more and more and I think it's closer than ever to a worthwhile move.