Zillow Gains 1.48% In Two Days As Technicals Show Bullish Support Near $78

Opening Context
Zillow Group C (Z) advanced 0.82% to close at $80.20 in the latest session, marking a two-day consecutive gain totaling 1.48%. This modest uptrend occurs within a broader technical context derived from approximately one year of price data, now analyzed through multiple lenses below.
Candlestick Theory
Recent candlesticks reveal a stabilization pattern after a sharp drop from the $82.11 peak on July 29. The July 22–23 bullish engulfing pattern (low: $77.48, high: $80.54) signaled momentum recovery, but follow-through weakened near $82 resistance. The current $80.20 close suggests consolidation, with support crystallizing at $78 (tested July 30–31) and resistance firming at $82.11–$82.45 (July 28–29 highs).
Moving Average Theory
The 50-day MA (~$74) and 100-day MA (~$70) maintain upward slopes above the rising 200-day MA (~$66.50), confirming a long-term bullish structure. Recent price stability above the 50-day MA indicates near-term bullish support. Consecutive closes above all three MAs reinforce trend alignment, though proximity to the 50-day MA suggests vigilance for potential mean reversion.
MACD & KDJ Indicators
MACD (12,26,9) shows histogram bars flattening near the zero line after a July momentum peak, hinting at neutral momentum but no overt bearish crossover. KDJ oscillators (K: 86, D: 79) hover near overbought territory (>80), aligning with recent price consolidation. While no divergence exists, KDJ’s elevation suggests limited near-term upside without digestion.
Bollinger Bands
Bands contracted sharply in late July, preceding the current range-bound phase. Price currently tests the mid-band ($78), with the upper band at $82.45 and lower at $73.55. This sideways "squeeze" typically resolves with a volatility expansion—directionality may hinge on a sustained break above $80.28 (August 1 high) or below $77.93 (August 1 low).
Volume-Price Relationship
Volume surges accompanied key turning points: the July 10 breakout (4.13M shares vs. 1.5M average) validated the rally, while July 29’s decline on elevated volume (2.36M) signaled distribution. Recent gains show moderate volume (1.64M–2.19M), lacking conviction. Sustainability concerns arise if volume doesn’t expand during upside attempts.
Relative Strength Index (RSI)
The 14-day RSI at 68.5 nears overbought territory but avoids a decisive break above 70. While momentum favors bulls, RSI’s divergence from the July peak (RSI: 74 vs. price: $82.11) implies weakening upside energy. A break below 55 could signal short-term exhaustion.
Fibonacci Retracement
Drawing from the January 2025 low ($41.77) to the July 2025 high ($82.11), key retracement levels emerge:
- 23.6%: $72.80 (aligns with 100-day MA)
- 38.2%: $68.75
- 61.8%: $78.90 (critical confluence with July 31 low and psychological $80)
Current price consolidates near the 61.8% level, turning it into pivotal support. A sustained hold above $78.90 may reignite bullish momentum.
Confluence and Divergence Synthesis
Confluent support at $78–$79 merges Fibonacci, prior swing lows, and the 50-day MA. A breakdown here could target $72.80. Conversely, reclaimed $82 resistance opens upside toward the $85–$86 historic zone. Bearish divergences include KDJ overbought signals and stagnant volume on rallies, contrasting with resilient moving averages. While the trend structure favors bulls, consolidation or a minor pullback appears probable near-term to alleviate overextension risks.