Zynga (NASDAQ: ZNGA) - Starting New Bullish Sequence

Elliottwave Forecast  |

With popular games like FarmVille and Zynga Poker, the American publisher has managed to stand out in a crowded market.

In the recent decade, the number of gamers grow in a fast pace and leading companies like Activision Blizzard ATVI and Electronic Arts EA are providing more creative content with better graphics. Investors turned to gaming stocks and helped to drive the market higher in the recent year. However despite the uptrend for the sector, ZNGA remained as an undervalued stock with a price below $5 with huge potential in the future.

Despite last year's sell-off in EA and ATVI, ZNGA remained in a sideways range and closed 2018 for only -2%. Currently at the start of of 2019, the stock is already +14%, so with the earnings report coming this week we'll take a look at its technical chart.

ZNGA Weekly Elliott Wave Chart

Zynga ZNGA Weekly Chart

In the above chart, the stock made an impulsive 5 waves advance from the 2016 low which ended in June 2018 at a $4.57 peak. Then the stock corrected the entire cycle lower in a classical 3 waves zigzag structure before turning higher again. So ZNGA established a new bullish Elliott Wave trend with impulsive momentum to the upside and corrective structure to the downside.

Stocks To Watch in 5G Wireless Growth Wave

Click to enlarge

At this stage, the stock managed to break above the 2018 peak which confirmed the bullish path, and it's now presenting a new incomplete bullish sequence for the stock. The measured target to the upside starts at the 100% Fibonacci extension at $6.11, which could remain a minimum target with a potential move above the 161.8% Fibonacci extension at $7.84 if the stock has enough momentum to continue as a regular impulse. Consequently, the previous 2-year bullish cycle could be only the first wave of a bigger 5 waves move to the upside.


The gaming industry outlook remains promising, and Zynga is becoming a primary actor in the market, driving huge potential for its stock to rise. The technical picture for ZNGA looks bullish, and it could see a strong breakout in the second quarter of 2019.

Stock price data is provided by IEX Cloud on a 15-minute delayed basis. Chart price data is provided by TradingView on a 15-minute delayed basis.

DISCLOSURE: Futures, options, and over the counter foreign exchange products may involve substantial risk and may not be suitable for all investors. Leverage can work against you as well as for you. You should therefore carefully consider your investment experience as well as financial condition before deciding if trading is suitable for you.

The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Trending Articles

Twitter Down 13% in Premarket Trading Friday as Musk Puts Deal on Hold
The Best Laid Plans of Mice and Men — Part I
Bumble Beats First Quarter Estimates, Has Over 3 Million Paying Users
Squarespace Beats Revenue Estimates With Record Q1
BridgeBio Pharma Inks Licensing Deal With Bristol Myers Squibb Worth up to $905 Million
How To Trade in a Bearish Market
AbbVie and Teva Weighing $5 Billion Opioid Lawsuit Settlement

Market Movers

Sponsored Financial Content