Monday, August 09, 2021 3:18:45 PM
3:57 pm ET August 6, 2021 (Benzinga) Print
Zynga Inc. (NASDAQ: ZNGA) shares plummeted lower Friday morning after the company reported worse-than-expected sales results for the second quarter. The company also reported it plans to buy StarLark for $525 million in cash and stock.
Zynga was down 18.22% at $7.99 at last check Friday.
See Also: Thinking About Buying Stock In Petco, Shake Shack Or Zynga?
Zynga Daily Chart Analysis
Shares took a large dip following earnings, the price looks to have bounced off an old support level.
The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
Each of these moving averages may hold as a possible area of resistance in the future.
The $7.75 level was once resistance before the stock crossed above it, then the level turned into support and fell near this price Friday. The $11 has been at resistance in the past.
The Relative Strength Index (RSI) dumped lower and now sits at 14 on the indicator. This means there was a very large amount of sellers getting rid of shares.
What’s Next For Zynga?
Bullish traders would like to see the stock bounce at the support level and hold above $7.75. If the stock can hold above $7.75 it could start to form higher lows and head toward the $11 resistance.
Bears would like to see the stock fall below the support level and begin to hold it as resistance. If this were to happen the stock could be ready to see another downward push.
Photo: Courtesy Zynga
It's "just money," enjoy it but can't let being upset about losing sometimes get in the way of enjoying your life.
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM