Zynga has been in a bull flag or descending channel structure for the better part of 4 months. Zynga has received some notable buzz around some of their recent business acquisitions. Looking at the chart, we see bullish divergence on the RSI, Momentum indicator, and a bullish MACD cross signaling a change in trend. A close above the channel EQ could trigger a move toward the top of the channel at $9.50.
Comment:
So far things have played out nicely, waiting to see if we break the channel. If we do, I presume we'll find resistance at the R2 pivot.
